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.
Starbucks long term goal is 15,000 US stores and 30,000 stores globally and to earn a good amount of revenue of 20 to 25% from them. Starbucks has an even “glitzier” goal which takes it beyond its coffee roots and in helping define society’s popular culture menu. Starbucks is considered as the most dynamic retail brand. It has been able to become a “Global Brand Leader” by reinventing the coffee experience. Starbucks gave US the “Café life” which didn’t existed before.
Such as financial solvency, knowledge of local market conditions, prior retail experience, and creative ability. • Starbucks also used licensing strategy dramatically used in countries like China Indonesia, Malaysia, Newland, Philippines, Singapore and Middle East. • The critical decision in terms of market entry strategy was to go to Asian market first because of the developed of the coffee market in Europe was very strong and on the other hand Asian coffee market was under
MG410 CONSUMER BEHAVIOUR SEMESTER 2, 2012 ASSIGNMENT ONE CASE STUDY STARBUCKS 2006 – MARKETING STRATEGY IN ACTION Table of Content Page # Introduction 3 SWOT Analysis 4 Answers 5 Conclusion 8 Bibliography 9 Starbucks Corporation is one of the most growing and influential companies in the world. It is renowned for its high quality roasted coffee beans and providing a new culture of coffee to the coffee lovers out there. It began in the year 1971 in Seattle, United States of America, with a mission stating as “To inspire and nurture the human spirit- one person, one cup and one neighborhood at a time”. The analysis is spread over the main areas concerning the history of Starbucks illustrated in the chart line below, secondly a discussion of the SWOT analysis of Starbucks Corporation, thirdly discussion of the answers to the questions in the case with the analysis from the SWOT discussion followed by a conclusion. To begin with, find below the history chart line of Starbucks which represents the important incidents that had happened in the past and pointing to the future.
: Competitors : Competitors (Alterra Coffee, Caribou Coffee, etc.) – How can corporate communication help Starbuck to remain on competitive edge against its competitors?E.g Primary Stakeholder: Owner/Investors – Discuss the purpose of these stakeholder within corporate communicationE.g Two way communication within Starbucks – What is the main purpose of applying this? (can take place between top management and operational as well as projecting corporate image and expecting feedbacksE.g Role of Corporate communication in relation to objective of company for e.g: “Starbuck’s objective has always been to emerge as one of the most recognized and respected brands in the world” - What is the purpose of corporate communication and how can it help Starbucks in achieving this objective? | ASSESSMENT CRITERION | BODY/CONTENTS – COURSE OF ACTIONS | The success of Starbucks is due to the strategic integration of its Organizational Identity and Corporate Reputation. Your Task is to test the validity of this statement.
Mission Statement “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” Company Description Founded in 1971, Starbucks began with one store located in Seattle, Washington’s Pike Place Market and served as a roaster and retailer of whole bean and ground coffee, tea and spices. Today, Starbucks Corporation has become the world’s largest coffee house company. The company boasts over $10 billion in annual revenue, employs more than 200,000 people called “partners” (because of their ability to own stock in the company), and serves nearly 60 million visitors a week in 17,000 stores in 54 countries. (Schultz, 2011) Starbucks primarily sells drip brewed coffee and espresso-based drinks along with coffee beans, teas, salads, hot and cold sandwiches, pastries, and merchandise such as coffee and tea brewing equipment, mugs and accessories, music, and books. The company has also expanded their offerings into grocery stores which distribute Starbucks-brand ice cream and coffee.
Starbucks’ strategy is one built on developing its core competencies to add value to its products and establish an image of luxury and elegance. Core competencies, as defined by Prahalad and Hamel (1990), are “the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies” (p. 81). Starbucks’ core competencies are evident in its capability to harmonize its expertise in real estate, excellent marketing strategies, management capabilities, operational efficiency and human resource management. Starbucks’ founder Howard Schultz wants to build a company that is truly unique. The famed CEO capitalised on the company’s core competencies in order to gain competitive advantage and strategic competitiveness in the business.
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.
To examine how the political risks would impact a company, this paper would discuss Starbucks Corporation (“Starbucks”) as an example, as well as the ways that Starbucks can evaluate these risks before entering a new market. Company Background The Starbucks story began in 1971. Back then Starbucks were a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. Today, Starbucks is a big multinational coffee and coffeehouse chain / outlet company which is privileged to connect with millions of customers every day with exceptional products and more than 17,000 retail stores in over 55 countries (Starbucks Corporation, 2011). Starbucks purchases and roasts high-quality whole bean coffees and sells them, along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of complementary food items, a selection of premium teas, and beverage-related accessories and equipment, primarily through company-operated retail stores.
INTRODUCTION The ever changing communication and technologies are effectively changing the global business environment. As a result to maintain a competitive position, managers need to continuously innovate and focus on addressing the needs of their customers both locally and globally. In this report I have been asked to help Medtronic CEO to decide whether his current bold strategic expansion into emerging markets is the right thing to do or to advise him on a different approach. This report is summarized with in three major chapters. Chapter one analyses Medtronic as a multinational enterprise by addressing”an initial screening of business environment including political environment, economics, culture etc.