To grow, Starbucks increasingly appealed to grab and go customers for whom service meant speed of order delivery rather than recognition by and conversation with a barista. Starbucks introduced new store formats like Express to try to cater to this second segment without undermining the first. Starbucks introduced many new products to broaden its appeal. These new products undercut the integrity of the Starbucks
It will present important information about the history and nature of the company. The project will also provide the reader with Starbucks’ business model and strategy that is essential for attracting more consumers, investors, and generate revenue. In addition, it will include information about the company’s environment; how the external factors impact Starbucks’ revenue, individuality, and competitors. Part of the data on how well the company is performing is to analyze its financial reports and perform the five – force model, SWOT, and corporate strategy analysis. All of this information provides potential investors with information about Starbucks’ performance.
Case 1.1 Starbucks – Going global fast The key aspect of Starbucks case is entering new markets. As said in the case, they’ve met few challenges – some positive and some negative – which included mostly legal requirements, local and global competition presence, coffee prices on potential markets as well as the brand perception and cultural differences. What is important in the case is the aspect of glocalization – think global and act local. Starbucks expansion was in fact the answer for local market oversaturation and growth strategy. Mostly, entering new market Starbucks counted for its reputation and in fact its marketing-mix was only slightly adjusted to specific cultural aspect of new markets.
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.
Ruth Chris had the following issues on hand; First, Dan Hannah had to decide which countries offer the greatest growth potential with the least risk. International businesses regularly offered opportunities for Ruth Chris but with strict selection criteria which in fact eliminated many of these business prospects. Secondly, the management team must agree on a standard development model and the decision of which mode of entry to use. Opportunities were evident for joint ventures or company owned stores in certain markets. Lastly but not least, Ruth Chris challenge was selecting the appropriate development model in conjunction with the management team but required additional information criteria in order to guarantee the future success of the organization.
``Employees were also encouraged to speak their minds without fear of retribution from upper management - senior executives wanted employees to be vocal about what Starbucks was doing right , what it was doing wrong , and what changes were needed (Starbucks Corporation , 1999 . The company introduces specific time-phased plans for improving the company 's culture in a logical and systematic manner in to achieve the culture specified by the
Starbucks gave US the “Café life” which didn’t existed before. Starbucks has changed our tastes, our lifestyles and penetrated in us by becoming part of the popular culture. Starbucks covers a broad base of customers from urban professionals to clerical assistances; Starbucks has found a way to appeal everyone despite of its high prices. Starbucks broad “strategy” is to grow into a global empire and any new change is done with great care and planning. Growth strategies are made to exploit customer connection.
I believe that learning somewhat comes from being enthusiastic and always willing to try new things. It is very important for a business to always be open for change and the ability to try new technology and strategy in order to improve and become more efficient. Please link Mr. Cotes ideas on leadership to the requirements of a strategic leader. Please describe how learning is tied to both types of development. Mr. Cotes has several examples that show how he is a strategic leader and he gave an example of his dad who was dealing with a angry customer at his gas station and he always learned from that experience that you need to sometimes put your pride aside during times of business.
Starbucks 1- Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this? In the spring of 1983, when Howard Schultz (Marketing Director of Starbucks in those days) went to Milan, for an international housewares show, he was inspired by Italian coffee bars and their unique characteristics. He discovered that Starbucks as a locally successful company is missing the key relationship with its customers in contrary of Italian coffee bars, which for them; serving coffee is not just selling a product to an unknown customer. He decided to re-create the Italian coffee bar culture in America, to change Starbucks into a place, which makes a great experience, not only a great retail store.
ACTION PLAN | ASSESSMENT CRITERION | BODY/CONTENTS – COURSE OF ACTIONS | Analyze and discuss the primary and secondary stakeholders of Starbucks | * Introduction of the Starbuck Coffeehouse Brief history – Group founder, presence in different countries , company profile – Including mission and vision(Source: http://en.wikipedia.org/wiki/Starbucks) * Analyze and extract relative primary and secondary stake holders of Starbucks (From case study and also from following sources:http://www.starbucks.com/responsibility/sourcing/store-productsWho are the primary stakeholders and secondary stakeholders for Starbucks?What are their influences on Starbuck? E.g. : Suppliers – secondary stakeholder: - How can suppliers being a secondary stakeholder help in creating and reinforcing a positive image about Starbucks? E.g. : Competitors : Competitors (Alterra Coffee, Caribou Coffee, etc.)