The other is political issue of supporting wars in Israel and their American armies. Using other theoretical analysis to examine the issues, the report further supports findings and implication based on the issues. In the end, this reports also shows the opinion to improve for Starbucks. 2. Social Issue: Trademark for Ethiopia farmers 3.1 Argument between Oxfam and Starbucks Starbucks blocked Ethiopia to apply trademark for their coffee beans.
INTERNATIONAL BUSINESS STARBUCKS’ INTERNATIONAL OPERATIONS Bucharest, 2013 Starbucks’ Case Study 1. Problem: Loses in revenue, difficulties in expanding on the international markets 2. Causes: - economic recession - volatile political environment -boycott of American goods and services -criticism from NGO’s -Scultz’s alleged closeness to the Jewish community and his affirmations viewed as anti-Palestinian -lower store traffic in Japan(customer criticism regarding the artificial taste of the coffee) - complex joint ventures and licensed agreements, through which the company receive only a small percent from the profits 3. Effects: Positive: -developing new products based on demand in different countries -new cheaper suppliers of items Negative: - Stiff competition - declining revenue growth 4. Alternatives: * Franchise method: Advantages: - expansion in new markets low costs and risks - concentration on the development of the brand - long-term commitments Disadvantages: - less control over each store - lack of control over technology - lower revenue (the franchiser receives a royalty payment that is a percentage of the franchisee’s revenue * „Go green” products Advantages: - increase market share - new customer target (vegetarians, business people) - improve brand image Disadvantages: - losing the initial reputation - business cost may increase * CSR campaigns: Advantages : - boost brand image by promoting social and environmental friendly practices - attract new customers who may be more loyal because of shared values and beliefs - partnerships with NGO’s for philanthropic relationships Disadvantages: - loses of revenues if the customers do not react to the campaigns by buying more products.
just behind Coors Light Defying the Traditional Product Life Cycle Theory - Going by standard marketing practices one would say that Budweiser finds itself in a decline phase due to its continued drop in sales over the last 25 years - But some would argue that brands like Budweiser and Coca-Cola defy standard theory due to brand identity and customer equity ,12derived from a loyal customer base - Anheuser-Busch is a master at identifying Budweiser as a true national beer, with a great American legacy, and a commitment to American values - The Budweiser brand also maintains a huge customer equity – they fell to Number 3 in the U.S. market in 2012 yet still sold over 108 million cases13 - A profitable market position allows for more precise sales forecasting - The merger of Anheuser-Busch and InBev in 2008 benefited the Budweiser brand in that it is now available in over 80 markets worldwide14 ,4,5,6 http://anheuser-busch.com/index.php/our-heritage/history/ ,3
While PepsiCo have diversified into healthier products and snack food business, Coca Cola have fell in marketing investments (advertising and marketing research) to maintain short term profit. As PepsiCo initiated the acquisition of Tropicana for $3.3Billion in 1998 (New York Times,1998)3, it have set itself up as the largest producer of branded juices for the health conscious in the USA. Subsequent acquisitions of Quaker Oats, Gatorade, Lay’s and Aquafina have also contributed positioned PepsiCo as the world’s 4th largest Food & Beverage (F&B) company with sales of US$22,000Million. The reluctance to diversify was evident when Coca-Cola decided against acquiring South Beach Beverage Company after negotiating for two years while Pepsi made an offer and in weeks acquired the SoBe brand New Age juice company, which gave Pepsi access to a market completely bypassed by soda
Some might ask, “Why Starbucks and not the cheaper competition?” I believe in the saying that goes: “you get what you pay for.” Definitely, the Starbuck’s competitors have a lesser taste of coffee because it seems that something is lacking in their product. Since purchasing coffee from Starbucks all these years, I have never really investigated the company more in depth. In this case study, I will explain Starbuck’s job design, departmentalization form, and organizational leadership by using some of the elements learned from the Management for Organizations course. Furthermore, I will delineate which organizational structure best fits Starbucks as a company. Essentially, the Starbucks’ job design provides different types of employment in the areas of retail, finance, information technology, global development, and supply chain operations (Steven, 2011).
In the 1990s global sales of coffee leapt from $30 bn to $50 bn. (Although, we should note, the money received by growers dropped from $12 bn to $8 bn; see www.oxfam.org.uk.) Coffee contains the stimulant caffeine, which has neurophysiological and cognitive effects, but buying and drinking a cup of coffee happens within a wider social context. The resurgence of coffee shop culture might have major civic, social and interpersonal consequences far beyond just meaning that I can get a nice cup of Java pretty much anywhere I want. DAVE ROBERTS TOM STAFFORD, the winner in the postgraduate category, investigates the coffee break.
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.
They position themselves by appealing to adults of all ages. What were their brand values? Answer: Starbucks is a mass brand attempting to command a premium price for an experience. Starbucks adopters who valued the club-like atmosphere of relaxing over a quality cup of coffee found themselves in a minority. 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.
Redesign ‘Rebranding Pepsi Campaign’ 1. Campaign title and time/date of the campaign: “My Pepsi, My Healthy, My Energy” Campaign, March 2012 2. Situation Analysis: PepsiCo faced waning sales due to the worsening US economy, economic slowdown, the global financial crisis, and plunging stock markets. Moreover, the company noticed that the US consumers’ preferences were shifting to cheaper and healthier drinks and that people were cutting down on their spending on beverages. April 28, 2011 (Bloomberg) -- PepsiCo Inc., the world’s largest snack-food maker, reported a 27 percent gain in first-quarter sales, bolstered by purchases in international markets.
The journey to success, however, was not without its obstacles. In February 2008, all US Starbucks stores closed its doors. CEO Howard Schultz believed that despite the stability and success of the store at the time, the company needed further improvement. There were different coffee shops coming up as competition and he wanted to remind his customers why