Strategic Management Starbucks
Final case
Starbucks
Table of Contents
Background Information………………………………………………………………………………………………………..1
Discussion of Strategy……………………………………………………………………………………………………………2
5 Forces Model………………………………………………………………………………………………………….............3
Driving Forces………………………………………………………………………………………………………………………..5
Key Success Factors……………………………………………………………………………………………………………….6
SWOT Analysis……………………………………………………………………………………………………………………...7
Analysis of Financials…………………………………………………………………………………………………………….9
Managerial Worry List………………………………………………………………………………………………………….10
Recommendations……………………………………………………………………………………………………………….12
Background Information
Today, Starbucks has proved to be a leading innovator and an example of success in an industry originally thought of as unrewarding. There have been many ideas for the future of the company that were challenged and rejected. But with careful planning, hard work, and determination, the Starbucks we know today was able to emerge and lead a revolution in the coffee serving business.
The company of Starbucks didn’t quite start out the way everyone would first think. There were three founders of the original base of the company. In 1971 Jerry Baldwin, Zev Siegel, and Gordon Bowker invested about $6,350 each to start up a business they originally called Starbucks Coffee, Tea, and Spice. Their location was perfect, being nestled in the very attractive Pikes Place of Seattle Washington. And by early 1980, they had already managed to open three more stores in the surrounding area of Seattle. Things were going extremely well and profits were more than expected. They thought they had found a niche. An area of the market that customers were interested in and that they can make a future out of selling coffee.
The quick, convenient, espresso or cup of coffee we know today from Starbucks is not what the original three creators shaped their name with. Starbucks Coffee, Tea, and Spice was a small store dedicated to the procedure of
Starbucks
Table of Contents
Background Information………………………………………………………………………………………………………..1
Discussion of Strategy……………………………………………………………………………………………………………2
5 Forces Model………………………………………………………………………………………………………….............3
Driving Forces………………………………………………………………………………………………………………………..5
Key Success Factors……………………………………………………………………………………………………………….6
SWOT Analysis……………………………………………………………………………………………………………………...7
Analysis of Financials…………………………………………………………………………………………………………….9
Managerial Worry List………………………………………………………………………………………………………….10
Recommendations……………………………………………………………………………………………………………….12
Background Information
Today, Starbucks has proved to be a leading innovator and an example of success in an industry originally thought of as unrewarding. There have been many ideas for the future of the company that were challenged and rejected. But with careful planning, hard work, and determination, the Starbucks we know today was able to emerge and lead a revolution in the coffee serving business.
The company of Starbucks didn’t quite start out the way everyone would first think. There were three founders of the original base of the company. In 1971 Jerry Baldwin, Zev Siegel, and Gordon Bowker invested about $6,350 each to start up a business they originally called Starbucks Coffee, Tea, and Spice. Their location was perfect, being nestled in the very attractive Pikes Place of Seattle Washington. And by early 1980, they had already managed to open three more stores in the surrounding area of Seattle. Things were going extremely well and profits were more than expected. They thought they had found a niche. An area of the market that customers were interested in and that they can make a future out of selling coffee.
The quick, convenient, espresso or cup of coffee we know today from Starbucks is not what the original three creators shaped their name with. Starbucks Coffee, Tea, and Spice was a small store dedicated to the procedure of