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Starbucks' strategy and pest analyses 1

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  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • 3 year : favorable demographic profile, could be serviced and supported by the company’s operations infrastructure Everywhere : cut down on delivery & management costs, shortened customer lines at individual stores, increased foot traffic for all stores in an area. Expand: sell Frappucino in Japan, Taiwan and South Korea
  • Sourcing from multi geographic areas to find wide ranges of coffee varieties. Fixed : limit exposure to price fluctuation Future : provide price protection Sustainability : 3-5 years contracts, reward the farmers with financial incentives and preferred supplier status
  • Transcript

    • 1. Starbucks’S TRATEGY ANDPES T ANALYSIS NEVROZ GÖS TER İ C İ
    • 2. Overview Established in 1971 at Seattle, Washington Famous for its quality fresh-roasted coffee beans and stylish atmosphere. Over 9,000 stores worldwide Product lines include : − beverages (coffee, Tazo tea, soda, juices) − pastries − whole coffee beans − coffee-related hardware and equipment − merchandise (mug, CDs)
    • 3. Starbucks’ Strategy Rapid store expansion strategy • Domestic store expansion • International store expansion • Employee Training and Recognition • Real Estate, Store Design, Planning, and Construction • Store ambience Product Line Coffee purchasing strategy
    • 4. Starbucks’ StrategyRapid store expansion strategy• Domestic store expansion − A three-year expansion strategy − “Starbucks everywhere” approach• International store expansion − Company-owned and company-operated stores or licensing − Created a new subsidiary, Starbucks Coffee International − Expanded its consumer products channel in South Pacific region
    • 5. Starbucks’ Strategy• Employee Training and Recognition − Systems to recruit, hire and train baristas and store managers  screening  training programs  awards for partners• Real Estate, Store Design, Planning, and Construction − A broad range of store formats (the right image and character) − A “stores of the future” project team − High-traffic, high-visibility store locations − Control of average store opening costs − Wi-Fi availability at stores
    • 6. Starbucks’ Strategy• Store ambience − The concept of “everything matters” − Assessment of standards
    • 7. Starbucks’ StrategyProduct Line•Wide range of products choices•Special product promotion•Selling music CDs•Joint ventures PepsiCo Dreyer’s Grand Ice Cream  Jim Beam Brands•Acquisitions  Hear Music  Ethos Water•Starbucks Cards•Partnership with Bank One
    • 8. Starbucks’ StrategyCoffee purchasing strategy• Building relationship with growers and exporters, checking on agricultural conditions and crop yields, and searching out varieties and sources that would meet Starbucks’ standards.• Using fixed-price purchase commitment and purchasing coffee future contracts• Contributing to the sustainability of coffee growers and helping environment conservation• Purchasing and marketing Fair Trade Certified coffee• Promoting coffee cultivation methods that protected biodiversity and maintained a healthy environment
    • 9. PEST AnalysisPolitical Influences − Relationships between U.S. and countries producing coffeebeans − Environmental regulations − Industry-specific regulationsEconomic Influences − Demand for food and beverages − Customers’ buying power − Exchange rate & taxation
    • 10. PEST AnalysisSocial Influences − Trend − Consumer preferences − Changes in lifestyle and occupation − EducationTechnological Influences − advances in manufacture − biotech and agricultural development − IT developments