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Project Submission SM II Vivek Rathi S Group

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Project Submission SM II Vivek Rathi S Group
Contents
1) Introduction: 1
2) External Environment of the Retail Market for Coffee & Snacks: 2
2.1) Industry Overview: 2
2.2) Industry Structure: 3
2.3) Industry Demand and Consumer Attitudes: 3
Strategic Analysis of Starbucks Corporation 3
2.4) Porters Five Forces Analysis of the Retail Coffee and Snacks Industry: 3
2.5) VRIO Analysis 5
3) Analyzing the Transformational Strategy 6
3.1) Doing it the Starbucks Way 6
3.2) Standardization and Adaptation 7
3.3) Diversification Strategy 7
4) Financial Strategy: Highlights 8
4.1) Financial Performance Analysis 8
4.2) Financial Parameters 9
4.3) Financial Risk Management 9
4.4) Fiscal Year 2014 — The Way Ahead 9
4.5) India Strategy 9
4.6) Starbucks in the Indian Market – The Way Ahead 10
5) Value Chain Analysis: 10
5.1) Primary activities 10
5.2) Support activities 11
5.3) Value Chain Analysis: The Indian Context 11
5.4) Challenges faced while entering Indian Market: 11
6) Recommendations: 12
7) References: 12
8) Exhibits: 13

1) Introduction:

Starbucks was started by Gerald Baldwin, Gordon Bowker and Ziev Seigl as a single store in Seattle’s historic Pike Place Market. The small store initially sold just coffee beans and coffee making equipment. The name was inspired by the classic novel Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders.

In 1982, Howard Schultz joined Starbucks as Director of retail operations and marketing team. He traveled to Italy in 1983 where he got impressed with the concept of coffee bars and the coffee culture. He wanted to replicate the same in United States but he couldn’t convince the owners. So, he left Starbucks and opened his own coffee bar chain named ‘II Giornale’ in 1986 where he started selling drinks rather than just coffee beans and machines. In 1987, Schultz acquired Starbucks from its owners with the help of local investors and renamed the II Giornale coffeehouses to Starbucks.

Schultz started expanding and the chain

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