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  • 1. Company background Commercial and Economic Model 4 Strategy Analysis Business Development in France Conclusion Agenda
  • 2. 1. Company Background Starbuck 7s (McKinsey)
  • 3. 1. Company Background Starbuck 7s – Hard Elements • Increase revenues through effectively positioning Starbucks stores as 3rd place • Tactics: product quality + customer services Structure • Flat management through de-layering : 1 store manager + shift supervisors + 16 baristas • Functional Structure • Employees as partners: brand equity extend through Ingesting in employees • Rotation system of duties to reduce workforce conflicts + increase job interesting • Training • Roasting coffee : deliver consistent product quality • Purchasing coffee: economies of scales Strategy System
  • 4. 1. Company Background Starbuck 7s – Organizational charts
  • 5. 1. Company Background Starbuck 7s – Soft Elements Style • Change from Laissez-faire to inspirational management • Motivate workforce • Respect customers and each other • Ethnically and Caring style • Capable and promising candidates • Customer Service: creation of friendly and relationship with customers • Lower employee turnover: generous benefit packages, unique and flexible working environments • Flexible work environment: apparently flexible work environment • Strong vision: Staff
  • 6. 1. Company Background Starbuck 7s – Soft Elements Skills • Skillful workforce achieve high level customers satisfaction: 24 hours- training, star skills, coffee master program, servant leadership workmanship, career power, career power for coaches workmanship • Coffee experience: Knowledge of coffee in supply chain management and quality controlling. Starbucks is able to handle each functions internally
  • 7. 1. Company Background Starbuck 7s – Soft Elements Share value • Leverage the “Starbucks Experience”: - coffee, friendly staff, interesting music and comfortable meeting place (3rd Place) • Environmental Mission “Starbucks is committed to a role of environmental leadership in all facets of our business” • Mission Statement “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow”
  • 8. 1. Starbucks SWTO STRENGTH WEAKNESS • Brand leader in the coffee market • Good Financial condition • Clear vision – Environment concern • Product diversification • Product is the last socially accepted addiction • High brand equity • High Brand awareness • Customer service is excellent • Customer base loyalty • Approx 13,000 employees; Valued and motivated • Good work environment • Convenient locations • 16,635 stores worldwide, • Company operated retail stores and licensees (no franchises) • Operating in 40 countries worldwide. • Good relationships with suppliers • Size • High operating cost • Lack of internal focus (too much focus on expansion) • Increasing number of competitors • Self-cannibalization • Closed 900 stores since 2008 • less control over stores outside U.S. • Product pricing (expensive compared to competitors) • Protest against the company on different issues
  • 9. 1. Starbucks SWTO OPPORTUNITIES THREATS • Emerging international markets • Product diversification • Co-branding with other food manufactures • Whole bean sales in supermarkets • New distribution channels (delivery) • Brand extension • New products (Via) • Economic recession impacts sales • Competition (restaurants, street carts, supermarkets, • other coffee shops, other caffeine based products) • market saturation • Coffee price volatility in developing countries • Negative publicity from poorly treated farmers in supplying countries • Consumer trends toward more healthy ways Fragile state of worldwide production of specialty coffees • Alienation of younger, domestic market segments • Corporate behemoth image • Cultural and Political issues in foreign countries • Labor Unions issues • ·Variation in coffee prices in developing countries
  • 10. 1. Starbucks Company Analysis Porter 5 Forces • Other beverages apart from coffee &tea e.g. soda, water • All energy drinks & pills: red-bull • Any other quick-grab foods apart from pastries, muffins • Lower-end or less luxurious places e.g. tea house • Low entry barrier • Current outgoing threats of new entrants like Mcdonald’s • Less bargaining power in the past • New entrants and competitors give buyer slightly more bargaining power • Beans suppliers: 70% from fair trade; 30% from normal trade; own distribution network • Package supplier: Starbucks has more bargaining • Coffee machines Supplier
  • 11. 1. Brand Identity Prism Inspiration of Starbuck
  • 12. 1. Brand Positioning Positioning Objective& Target • Brand Image : an innovative industry leader that produces HIGH QUALITY coffee • Image based on Product vs Brand on Experience (3rd place - the place between home and work where people could gather, relax and interact with one another) • Target : middle to high incomes, who had a desire to purchase premium products. 20-45 years old women in USA; Tribes in EEU
  • 13. 1. Brand Positioning Starbuck