Task 1 P1: Describe the type of business, purpose and ownership of two contrasting businesses Introduction: In this assignment I am going to introduce of both my selected businesses and in my case my selected businesses are Starbucks and Warung Tegal. The activities that both of the businesses have, a description about each of the business types, the purposes (aims and objectives) they have and the form of ownership. Starbucks. Introduction Starbucks. Starbucks is an international coffee business from the United States and has over 20000 shops over 62 countries.
Additionally, Starbucks has distribution agreements with office coffee supplier, hotels, and airlines. Using a variety of distribution channels allows the company to reach a wider market, however the company needs to be careful with this approach due to the potential channel of conflict. Implementation of Pricing Strategy Starbucks is the leader of the coffee market. As an individual company, it controls several times more market than any of its competitors. More than just a high priced coffee shop, Starbucks offers a combination of quality, authority, and relative value.
When one needs to get an energy boost, they will usually turn to coffee. In past years, coffee was a slow product to make unless one wanted to pay for a premade cup brewed at a store. According to The Keurig Story (2012), since 1998, Keurig has changed the market by offering an at home single cup coffee maker with speed and efficiency that the consumer market demands. Product Description Single cup coffee brewing systems are the leading technology in the coffee industry today. Keurig, Inc. is among the top producer of the single cup coffee brewing systems.
In February of 2002, however, its ownership structure changed enabling it to raise $10 million in capital to expand into the at-home coffee service business. A year later, it developed a new model known as the B100 system and planned to launch the product in the at-home market. Before its launch however, 42% owner, GMCR made a proposition to alter the at-home portion of the coffee pack known as a K-cup and gave several compelling reasons. Keurig’s original commercial design of the K-cup brewer featured a system that worked in the following manner. The machine itself is hooked up to a water line, with automatically refillable water reservoir that maintained up to 12 cups of water at brewing temperature.
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.
In 1987, Howard Schultz acquired Starbucks and ran with the idea that a barista-type coffee house was going to be the wave of the future. It was. 17,000 stores and 137,000 employees later, Schultz has proven time and time again that he has a viable product regardless of hard economic times. However, how can a giant like Starbucks stay on top of the coffee market yet be an ethical and sustainable organization? Starbucks continuous strive and strategic management plans have proven beneficial in keeping to the goals of the organization.
Running Head: Starbucks Marketing Plan Proposal GB530 Marketing Management: Starbucks Marketing Plan Proposal GB530 Heather Conley March 19, 2013 Starbucks Marketing Plan Proposal Upon careful consideration, I have decided to create a marketing plan proposal as an addition to Starbucks’ already-existing line of products. In fact, the product I have chosen for my project is an extension to their already-existing line of drinks sold outside of their independent stores, with a designated target of retail stores (ex. Wal-Mart, Albertson’s, etc). This new product will be called “Starbucks Refreshers.” Refreshers will be a product similar to that of Mio, Kool-Aid, and Crystal Light. The difference between this product and others previously mentioned is that Starbucks will sell drink mixes to be added to water, targeting flavors not already in existence, with Strawberry Lemonade to be the first flavor produced and sold.
Under the new leadership and organizational move, the company will transition to a new three-region organizational structure that is hopeful to produce optimization and speed going forward. In each region, a president is appointed and they all will report to Howard Schultz, chairman, president and chief executive officer of Starbucks Coffee Company ("Starbucks announces new," July). Although this expansion is sure to help add on to the building momentum of the company, I think the organizational structure is typical of many successful companies. I wanted to examine a company that has garnered success with more of an unorthodox structure and Whole Foods is
Recommendations — Resource allocations (which current programs to keep, which to rethink) — Moving the levers (strategies for improving the impact of CSR efforts) — Exploring uncharted territories (new programs or initiatives to try) — Expanding the definition (broadening the portfolio of things that can or should fall under the umbrella of CSR) V. Conclusion I. Introduction Mission: To inspire and nurture the human spirit. One person, one cup and one neighborhood at a time. -- Starbucks Starbucks has experienced tremendous growth in the past 4 decades since its inception in 1971 from a few retail coffee ‘bars’ in Seattle to a multinational premier coffee brand with over 18,000 stores in over 60 countries (Starbucks Global Responsibility, 2012). Starbucks’ CEO Howard Schultz has led the growth of Starbucks into the 21st century to be a model multinational company—epitomizing global corporate social responsibility (CSR) practices.
CoffeeTime Research and Decision Making CoffeeTime is an organization specializing in acquiring and roasting some of the most exquisite coffee beans. These coffee beans are sold and blended to create coffee beverages bought in coffee bars in North America and Europe. CoffeeTime can be described by the customers as, “…a great place to hang out” (University of Phoenix [UOP], 2002). “For millions of American and Europeans, CoffeeTime stands for the celebration of coffee. Mocha Italia in the morning.