MGMT4842-601 | Starbucks: Case Analysis | Strategy and Internal Initiatives to Return to Profitable Growth | Teikisha Williams 12/7/2012 | Background Information Starbucks is a highly recognized brand name around the world. The infamous coffee chain restaurant began their success in 1971 with three friends, Zev Siegel, Gordon Bowker and Jerry Baldwin. They each equally invested $1,350 and borrowed $5,000 from their bank and opened Starbucks Coffee, Tea, and Spice in Seattle, WA. They originally didn’t sell brewed coffee to the public but rather focused on whole bean coffees and other coffee products. The trio was influenced to open a coffee store by Alfred Peet, owner of Peet’s Coffee and Tea.
In the 2000's the Starbucks phenomenon continues. Starbucks became a publicly traded company in June 1992. Starbucks offers a collection of coffee beans, ground or whole, Tazo Teas, Torrefazione Italia Coffee, Pasqua Coffee, ice blended beverages, a full espresso bar. In addition to their excellent coffees and espresso drinks, people enjoy the finest and freshest ingredients and use them to bring people delicious foods that compliment
Several years later, after working at other companies to gain experience, the two women decided to take the plunge together and made a plan to open a small café where they and their customers could indulge their love of good coffee and fine chocolate. They looked at two locations for their café: one near Pike Place Market, which gets a lot of foot traffic from shoppers and businesspeople, and one near the university, where shops and restaurants are patronized by students, faculty, staff, and local residents. They chose the university location because they thought they knew and understood those customers well. The doors to Custom Coffee & Chocolate opened several months later, with both Brewer and Kim working hard to serve unique coffee blends and specialty chocolates, maintain the shop, and handle the finances. Custom Coffee & Chocolate's business plan included purchasing only fair trade coffee (priced to provide living wages to coffee growers) and chocolates made by a few local suppliers.
Financial Statement Analysis Starbucks Vs. Caribou Coffee By: Dan Polak 2/21/11 Which is the better investment? When choosing a company to invest in, it is best to avoid brand name bias and choose the company that, according to its books, is the most efficient and profitable. While Starbucks is the famous brand name, it is also clearly the better company. Not only is it the international fresh brew behemoth, but, year by year, it never ceases to prove just how much the world, especially Americans, love their fresh cup of coffee and how much they’re willing to pay for it. When analyzing the four financial statements, it is easy to see that Starbucks triumphs over Caribou in almost any statistic or ratio.
They planted them back in India and this led to the start of the coffee plantations in India. Table 1: A brief Timeline for coffee. Coffee Retail industry in India: India has always been a chai or tea drinking nation. Coffee was popular only in a few states of South India. Initially it was the rich Brahman families who consumed coffee.
He raised $25 million from Starbucks’ IPO, added outlets across the country and began diversifying Starbucks’ product lines. While Starbucks continued to offer whole bean coffee, their primary product offering transitioned to customized single cup coffees. This proved a successful move and by 2002 coffee beverages account for 77% of all Starbucks’ sales. Within 10 years Shultz expanded Starbucks to more than 5000 outlets worldwide. During that expansion period Starbucks enjoyed a compound annual sales growth rate of 40% and a compound net earnings growth rate of 50%.
Serving thousands of coffee shops and home consumers across the U.S., Coffee Bean Direct is among the fastest growing coffee companies on the web. Approach When Marketing Associate Floyd Wallace heard the buzz about Google Checkout, he was intrigued for several reasons. Checkout promised reduced credit card transaction fees, Google promotions, the Checkout icon on every Google AdWords™ ad, and easier transactions for customers. Since the beginning, AdWords has been a big component of Coffee Bean Direct’s advertising and marketing strategy; Checkout seemed like a natural complement. “We are always excited to offer convenient choices for our customers,” explains Wallace.
Value Proposition The idea was to create a chain of coffee houses that would become America’s third place. First and second being home and work. * Starbucks focused on the intagiables associated with drinking coffee. * Atmosphere-It was not only about taste and quality, but the experience of drinking coffee in a Starbucks store. * Service-It provided emotional benefits and tried to enhance the national coffee culture through its offerings.
Customer analysis (The tenet of Starbuck is to create an experience for its customer when they purchase the coffee, and drink Starbucks would become a part of customer's life. Currently, Starbucks’ services over 20 million customers in over 5,000 stores around the globe which was a great number.) (site) A good customer loyalty is primary reason for the company to win the market shares. Customer analysis is one of the most effective processes to know what the customer needs and how to satisfy their need so that company can get more profits. It also helps Company works well in the market and create the certain products for their target customers.
2. Background 850 was first known as the date that coffee plant was discovered. The coffee appeared for the first time in Africa in Ethiopia. Brown said “According to legend, a ninth century Ethiopian named Kaldi observed that his goats became energized after nibbling on some wild barriers” (Brown, 2009). Experiments with the berries himself and begins to feel capable of dispersing sleep and weariness (Brown, 2009).