Although Starbucks does face much competition, one of their biggest threats seems to be themselves. They have grown quickly which means they had to spend numerous amounts of money to open new stores and expand their products. “The company had its success through baby boomers in the 90’s, but now the Generation X is not liking the environment of the shop and the young generation feel out of place in the coffee shop, above all the price of coffee seems to be little expensive to them ("Case: Starbucks- Going Global Fast", 2012)”. With Starbucks wants to grow r rapidly and business oriented, it could be possible that they forget how to give customers that one on one customer service. Starbucks was a coffee shop that allowed friends to come together over a cup of coffee and now it has expanded with Wi-Fi in stores, and online stores.
With a solid financial plan, the organization can tackle initiatives without the organization finding itself in so many debits they cannot recover. Initiatives can also affect a company’s financial planning, just as it affected Starbucks initiatives. Howard Shultz, the CEO of Starbucks stated, Starbucks has initiatives and plans that include increased stores, operating efficiencies, decreases in cost, and even more long time growth for Starbucks (Starbucks, 2011). In order for Starbucks to increase stores, decrease cost and increase operating efficiencies, they had to create a financial plan for this initiative. When a company, such as Starbucks, starts financial planning, it begins with a firm’s working capital to achieve the company’s goals and initiatives.
Liberty University Final Group Paper BUSI520 –B21 Jeffrey Wietholter, Nathaniel Martin, Richard Oros, John Rafoss, Kevin Staples March 7, 2012 Executive Summary Keurig is today’s fastest growing home and business single cup coffee maker. Their invention of the single K-Cup coffee roasting product has revolutionized the coffee industry. Keurig today is a subsidiary of Green Mountain Coffee Roasters (GMCR). GMCR prides itself on producing premium all natural coffee beans and is now providing the coffee for Keurig’s K-Cups. Written below is an integrated marketing analysis of Keurig’s current business.
That is why in my assessment I will try to look closely to the company, see how it operates as well as will try to implement company strategic plan while comparing it to other similar brands in the market. Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 till 2011.
Strategic Initiative Several strategic planning initiatives for the Starbucks Corporation, as identified in their fiscal 2012 annual report include: * To expand the core business of coffee roasting and distribution channels * Create authentic connections with their customers via the Starbucks experience * Expand market share capture in the high end tea market category (Teavana) * Support and encourage innovation within Starbucks business sectors The Starbucks Corporation continues to drive toward a balanced approach of increasing shareholder wealth. The cooperation recognizes and supports a socially responsible position with true global issues and concerns. Starbucks understands this delicate balance and does not compromise its reputation for the mere sake of increased profitability. One example of their strategic plan is identified with their recent success of enhancing their distribution channels. According to the "U.S. Securities And Exchange Commission" (2012) fiscal annual report; Starbucks consolidated global revenues reached a record $13.3 billion, a 14% increase, with revenue growth driven by a 7% rise in global comparable store sales and a 50% rise in
Minyu Xu SWOT analysis Opportunities and Threats Opportunities: International market Keurig company’s main product is the K-Cup, a single-serving coffee brewing system. The Keurig single cup coffee maker platform was named a "Brand of the Year" in the 2012 Harris Poll EquiTrend Equity Study in the "Coffee Maker" category. It is also the leading single cup brewing system in North America. However, to achieve more opportunities and profits, it is a good choice to go to international market for several reasons. First, to encourage global marketing, many countries have free their trading acts and encourage foreign companies to invest in.
was given the highes t weighting of the comparables at 40% becaus e of its realized growth and its brand identity. Both Chipotle and Panera s trive to deliver fres h ingredients and provide s imple goods at a relatively fas t rate. They are als o located s olely in the US & Canada and have yet to expand into Europe, although they plan to when they find a s uitable menu. Starbucks Corp. (SBUX) – 20% Starbucks purchas es and roas ts whole bean coffee in the United States , Canada, UK, China, Germany, and many other countries . Starbucks provides a variety of coffees and es pres s os as well as fres h food items including pas tries , s andwiches , s alads , and other items .
Growth had been supported by markets reforms, huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a flourishing capital market” (India, 2000). The potential is present but research has to be completed to determine which cities to enter, who the target segment is, and estimate the expected revenue per outlet. Locations in India This paper shall determine the best locations to establish new coffee bars in India, review the data provided, and determine the limitations of the data available, and address constraints placed on CoffeeTime. Many of the
1 - What is the nature of the opportunity in China and why would Wal-Mart seek to expand there? The opportunity for Wal-Mart in China is huge due to the shear number of potential consumers and growing middle class ready to spend money on retail products. However, its economy is very different from most other large countries for many reasons. The P.E.S.T. analysis provides a macro level view on the environment in China.
4. The case of Starbucks: ethics and marketing Starbucks changed its main supplier in terms of coffee, and now its major coffee producer is the global organization Fairtrade (“commerce equitable”.) Starbucks has always presented itself as a fair-trade company: it presents itself as an ethical corporation, claiming that it pays higher than market price for its coffee, thus distancing itself from other coffee houses. By doing so, by adhering to fair-trade movement, Starbucks partakes in the helping of 100,000 coffee farmers and communities. Not only is this changing its economic strategy, as coffee gets more expensive to buy for the company, but it more importantly improves the image of the brand on the social stage.