Starbucks Projects

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ASSIGNMENT
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Introduction
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Starbucks is very popular over the world, including Australia, known as the largest coffee chain providing to the customers coffee and beverage. Since the first store was opened in Seattle USA in 1971, up to date, Starbucks has 19,972 stores in 60 countries in Asia, North America, South America, Europe, Africa and Pacific Ocean. From July 2000, when the first Starbucks store was opened in Sydney’s CBD, to date, Starbucks has 23 coffee stores in Sydney, Brisbane, The Gold Coast, The Sunshine Coast and Melbourne. However, in contrast to the success of Starbucks in USA, where the Starbucks was born, China, Canada, UK and so on, the failure of Starbucks in Australia becomes a valuable lesson in business when Starbucks Australia closed 61 stores in 3rd August 2008 due to the lack of understanding Australian coffee culture. The purpose of this project will classify the business strategy, organizational structure, performance measurement and reward system and balanced scorecard of Starbucks to provide more knowledge about Starbucks, especially Starbucks Australia. -------------------------------------------------

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PART I:
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1) Business Strategy:
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Starbucks Coffee Company in Australia was operated firstly in Sydney in July 2000 after getting the confidence to enter to the two large markets in Japan (1996) and China (1998). After that, the business has expanded the market to moreover 22 stores around Australia (Sydney, Brisbane, the Gold Coast, the Sunshine Coast and Melbourne). The nature of business is producing quality coffee products in order to achieve the highest satisfaction from customers’ perspectives. Also, the company has concentrated on the atmosphere around the workplace. As being a well-known brand among Australia, the business has reached the objectives as producing the best quality of coffee products by following the business mission, analysing competitive advantages and key success factors for the company. These three aspects will be discussed further. -------------------------------------------------

Business Unit Mission
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As becoming the most successful company in coffee industry, Starbucks has dominated as the first position in this field. Due to losses of A$143 million, the business has to close 61 over 84 Australian stores in mid-2008. As facing with some major failures in the first stage when entering the Australian market, they later learned a lot of valuable lessons. The failure was due to inadequate of doing analysis and researches on the new market. Moreover, according to Leonard – a business specialist, the managers of the store required their staffs to achieve target sales of the day as well as get engage with their customers at the same time. Some employees disagreed with this strategy because they did not perform both in the same time. This performance was failed to approach which is one of the reasons for the failure of Australian Starbucks Coffee Company. -------------------------------------------------

As knowing that there is no close competitive to the business, Starbucks has a large market share as well as a high – growth position in coffee industry. Their mission is to protect the market share together with competitive position. So, their current mission is HOLD mission. Nowadays, their mission as stated on the official website is that “to inspire and nurture the human spirit - one person, one cup and one neighbourhood at a time”. As changing their focus on the value of customers and products, the business...
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