Corporate Strategy Analysis……………………………………………………………..13 10. Recommendations………………………………………………………………………..15 11. References...……………………………………………………………...………………17 1. Abstract This individual report aims at analyzing Starbucks Coffee Company as a successful and competitive business. It will present important information about the history and nature of the company.
Strategic Initiative Paper FIN/370 March 12, 2012 Rick Schultz Strategic Initiative Paper A strategic plan is an important component of any organizations success. With a solid strategic plan in place an organization will have a clear understanding of: * What they do, * Who their customers are, and * What risk factors they face (Titman, Martin, & Keown, "Section 17.1, An Overview of Financial Planning," 2011) Having a clear understanding of what an organization does enables them to compare every activity in the organization against their mission. For example, at Starbucks their primary objective is to maintain their standing as one of the most recognized and respected brands, as a premier retailer of specialty coffees
Qualitative and high fashion items for a low price. Weakness – it’s a small business unit, need to do future competition similar company. * Starbucks Sector – secondary Owner ship- Public Limited Company Business activity – it sells the hot and cold drink and breakfast Competitors – this is a local shop in London. But competitors of this are Costa because it sells the same products as starbucks. Success – * Finding innovative solutions - They sell the healthy breakfasts and also have different type of coffees and any more drinks * Meeting customer needs – they have loyalty card that customer can use it * Identifying new needs - They look for what customers want in their website.
The Future of the Starbucks Starbucks is a familiar brand to us, especially to the coffee fans. Starbucks tells us “to live like tasting coffee”. Are there any advantages and disadvantages in the business operation? Can it keep advanced in the fierce competition nowadays? In order to compound the problems, we will utilize the VRIO framework to do analysis.
The Starbucks Coffee Company we know of today rose from the passion and love that CEO Howard Schultz has for coffee itself. After a trip to Milan, and acknowledging the love with which the coffee maker in a small shop worked, he realized that brewing coffee was a craft. He said, “The blend of craftsmanship and human connection, combined with the warm aroma and energizing flavors of fresh coffee, struck an emotional chord.” (Schultz Chapter 2) He wanted to create this same atmosphere with the coffee shops he was in charge of back home, but his bosses didn’t agree with him. Upon his return he left the four small Starbucks stores, and opened up his own small coffee shop Il Giornale. After almost a year and half, Jerry Baldwin and Gordon Bowker, his former employers, offered to sell to him their Starbucks stores.
I used to associate sustainability with the housing industry as I first heard of the term of “sustainability” from some successful marketing cases of “green architecture” in my country. Then I tended to believe that sustainability plays an important role either in present time or in the near future in terms of product and marketing strategic consideration; however, after the first lecture of the module, my perception has shifted to a much more vital and bigger perspective that would both affect the global environment and industries. The concept of eco-friendly seems obvious another explanation of sustainability though it is simply one of the issues, yet this assumption relies on the studies through all the lectures I have been taking. For giving more consoled personal reflection on sustainability, the following lecture aims are the assessment criteria for reviewing my learning outcomes, and providing critiques on certain aspects, in different scenario, such as home, work, commuting and consumerism. * Define sustainability * Review the environmental implications of modern industrialism * Review personal purchase experience and ethic behaviour Home As I began to think about my own sustainability ethic, I started to review my own behaviour at home first.
Today, HP’s sustainability priorities reflect their commitment to balancing corporate values and business goals with the company’s impact on society and the environment. Summary HP has been working on environmental and sustainability initiatives for a very long time, well before such issues were of mainstream interest. Mark Hurd, HP’s CEO, in his 2009 letter to his stakeholders, 2 understates HP’s sustainability activities. Shelley Zimmer, HP Executive, responsible for Corporate Social Responsibility (CSR) seems to agree that Hurd takes a conservative approach when she says “we are only now beginning to understand how to communicate the details to our stakeholders and right now we are reflecting a somewhat modest approach to talking about our CSR achievements.”3 In his 2009 letter to his Shareholders, Hurd, mentions in an understated way many of HP’s CSR activities and says HP is helping to “Build a Better World”. Hurd does note, without mentioning specifics, that HP’s 2009 sustainability measurements were recognized by Newsweek and ranked # 1 among the 500 largest corporations in the United States.
The logo and its color were changed. What was their source of equity? Answer: Starbucks deals with brand equity by always taking the future into account. By this I mean that they switched from selling coffee beans and equipment to being a coffeehouse which got everything started. Starbucks deals with customer equity by having highly trained as well as skilled employees.
Starbucks and Environmental Strategy Unlike many other companies, Starbucks has been highly vocal about their goal to minimize their environmental impact and have made sustainability a part of the company culture. In 1990, long before many other companies began thinking about sustainability, Starbucks formalized a document they called “Guiding Principles.” Within these principles, they embedded the value of “contributing positively to the community and environment.” Along with their Mission Statement, Starbucks refers to these Guiding Principles as
According to "Positioning and Differentiation Strategies of Marketing" (1999-2012), “Michael Porter of the Harvard Business School, differentiation is one of the generic strategies that a firm can use to gain a competitive advantage in the marketplace”. As Starbucks differentiation involves offering something that our direct competitor does not have, and that is Starbuck scented candle in decorative or designed cup have the customer a chance to keep the coffee cup for his or her morning coffee. The positioning of this product is the idea to improved not only in sales but to give back to Starbucks loyal customers a little bit of the scent in a candle, and our special designed coffee mug or cup (Starbuck Logo), in which it will look good as a display in your kitchen, or as part of the in-house decoration, and even better to share as a gift to a co-workers, or decorative as well in the office.