Executive SummaryWhat was once a small coffee shop opened by Gerald Baldwin, Gordon Bowker,and Ziev Siegl in 1971, Starbucks Coffee Company has grown into the number onespecialty coffee retailer. With over 10,000 coffee shops in more than 30 countries, ofwhich 4,200 are licensed and franchised and 6,000 are owned, the company’s mainobjective is to establish Starbucks as the “most recognized and respected brand in theworld,” (Moon).Currently, Starbucks is relying on retail expansion, product innovation, andservice innovation to achieve a long-term goal once set by current chairman HowardSchultz:“The idea was to create a chain of coffeehouses that would becomeAmerica’s “third place.” At the time, most Americans had two places intheir lives – home and work. But I believed that people needed anotherplace, a place where they could go to relax and enjoy others, or just be bythemselves. I envisioned a place that would be separate from home orwork, a place that would mean different things to different people,”(Moon).By working toward this goal, Starbucks wants to open new stores in both new andexisting markets, expand their product development process, and cater to customers’needs to eventually improve their financial position and dominate market share.Market Summary• Target Marketso In the early stages of development for Starbucks, Schultz identified theirtarget market as “affluent, well-educated, white-collar patrons (skewedfemale) between the ages of 25 and 44,” (Moon).o Over time, market research teams have recognized the new target marketas “younger, less well-educated, and in a lower income bracket than theirmore established customers,” (Moon).o Nonetheless, the original target market has not disappeared, but hasexpanded into the demographic of the store location. For example,southern California stores cater to a growing number of Hispaniccustomers.• Market Demographicso Geographics (Moon)
Data from 2002 showed that in the Southeast there was only onestore for every 110,000 people. Whereas in the Pacific Northwest,there was one store for every 20,000 people. Hence, the companywas far from reaching existing markets.International plans showed Starbucks was operating in over 300company-owned stores in the United Kingdom, Australia, andThailand. Also, 900 licensed stores were operating in Asia,Europe, the Middle East, Africa, and Latin America.o DemographicsYoung, affluent, tech-savvy customers (Hoovers)A 1999 estimate showed that 70% of customers were internetusers, and today the estimate has exceeded 90% (Hoovers).Moms with strollers (Hoovers)People combining work and a coffee break (Hoovers)The most frequent customers average 18 visits per month, whereasthe typical customer visits five times per month (Moon).Average age for an established customer was 40, new customerswas 36 (Moon).Customers that started visiting Starbucks in 2002 were 45%female, 55% male (Moon).• Market Needso Starbucks wants to create an experience for their customers that combinetheir on-the-go schedule, as well as a place to relax. Senior vice presidentof administration in North America Christine Day explains that, “peoplecome here for the coffee, but ambience is what makes them want to stay,”(Moon).o SelectionStarbucks menu contains brewed coffee, espresso traditions andfavorites, cold beverages, coffee alternatives, frappuccinos, and thesale of whole beans.o Accessibility
Starbucks operates over 10,000 retail stores. Most of the 4,200franchised stores are located in shopping malls and airports.Starbucks coffee brands are also marketed through grocery storesin the form of beans and even ice cream flavors.o Customer ServiceStarbucks employees are referred to as “partners.” As of 2002,Starbucks employed 60,000 partners worldwide, 50,000 of those inthe United States. From the beginning when Howard Schultz tookover Starbucks, he believed, “Partner satisfaction leads to customersatisfaction,” (Moon).o Competitive PricingFor North American stores in the 2002 fiscal year, the averageprice of an order was $3.85. The drinks come in three sizes: tall,grande, and venti (Italian for small, medium, and large). The leastexpensive price for a tall drink is $1.40 for brewed Coffee of theDay. The most expensive price for a venti is $4.15 forfrappuccino. Whole beans are sold in half and whole pound bagsranging from $5.20 to $15.95 (Moon).Starbucks brand coffee sold in grocery stores are similar to theseprices found in the cafes.• Market Trends (Moon)o Total U.S. Retail Coffee Market (both in-home and out-of-homeconsumption):2002E - $21.5 billionStarbucks Share ofSpecialty Coffee Market42% (estimate)Traditional Coffee73%SpecialtyCoffee27%2005E - $22 billionStarbucks Share ofSpecialty Coffee Market50% (estimate)TraditionalCoffee69%Specialty Coffee31%
o Estimates for the U.S. retail coffee market in 2002 include:In-the-home consumption was an estimated $3.2 billion business.Starbucks was estimated to have a 4% share.Specialty coffee was an estimated $5 billion business in the food-service channel. Starbucks was estimated to have a 5% share.• Market Forecast (Moon)o Over the next few years, an estimate for the U.S. retail coffee marketexpects specialty coffee to have a compound annual growth rate (CAGR)between 9%-10%.o Starbucks was also estimated in 2002 to grow at a CAGR of about 20%top-line revenue growth.o As of 2002, coffee consumption had risen with more than half of thepopulation (about 109 million people) drinking coffee everyday, and anadditional 52 million drinking coffee on occasion.• Market Growtho Reports show in 2002, the number of specialty coffee drinkers has becomethe market’s biggest growth.o An estimated one-third of all U.S. coffee consumption takes place outsideof the home and in places such as offices, restaurants, and coffee shops(Moon).SWOT Analysis• Strengthso The company is good at taking advantage of opportunities.o Starbucks is very profitable and has a strong financial base, therefore allowingthe company to undertake new business ventures.Revenue increased to $5294.2 million in 2004, a 29.9% increase from2003 (DataMonitor)Profits increased to $610 million in 2004, a 43.7% increase from 2003.Net earnings increased 46% (SWOT).
o The company is internationally recognized and has a global presence.Their reputation is one of fine products and services.Almost 9,000 cafes in almost 40 countries (SWOT)Widespread brand recognition, which in turn becomes brandpreference, and ideally eventually brand loyaltyStrong customer baseo Respected employerValues its workforceVoted onto Fortune’s “Top 100 Companies to Work For” (2005)o Strong ethical values and mission statemento Disciplined innovatorUnderstands the Adapt-or-Die theory of marketingHas the ability to roll out new products relatively quickly, whichtranslates into a considerable competitive advantageo Clusters company unitsExpands business with the continuing growth of the coffee market,especially in areas where the company is already well established, andgroups stores in an area, therefore able to dominate the regionLeads to considerable financial reward without suffering fromcannibalism (DataMonitor)Focus on opening stores that have convenient access for pedestriansand driversHelps the company capture an increasing share of the coffee market• Weaknesseso Reliance on beverage innovationVulnerable to the possibility that their innovation may falter over time
Company growth is mostly driven by beverage innovation.If U.S. store growth decreases, stock is lowered in value.Diminishing return from beverage innovation would have an adverseeffect (DataMonitor).o More than 75% of the company’s stores are in the USA (DataMonitor).May need to look for an assortment of countries in which to open moreshops in order to spread business risk85% of revenue is from its domestic US market (DataMonitor).• Has high international brand recognition and should look togenerate a greater proportion of revenue from outside the USA• Would suffer greatly if U.S. stores underperformed because ofeconomic conditions or increased levels of competitiono Dependent on the retail of coffee, which could make them slow to diversifyinto other divisions if the need should ariseo Employee efficiency is poor.Lower revenue per employee ($71,544—fiscal 2004) compared to theindustry average ($110,841) (DataMonitor)Lower income per employee ($5,294) compared to the industryaverage ($9,500) (DataMonitor)o Lower Return on Equity than peersCompany’s 5 year average ROE (13.65%) have been lower than theindustry average (15.09%) (DataMonitor).Need to effectively manage its finances to ensure that returns are at parof higher than industry averageo Problems in some international operationsProblems of expansion: A number of openings are failing to besuccessful.Japanese operations: The company has experienced some same-storesluggishness.
Closures of stores in Israel and Tel Aviv: Hurts growth prospects inthe region• Opportunitieso In 2004, created a CD-burning service where customers can create their ownmusic CDo Opportunities for revenue growth by expanding its global operationsNew markets for coffee are beginning to emerge; for example, in Indiaand the Pacific Rim (SWOT).Targeting 15,000 international stores in the next few years• Expansion potential questionable in Brazil, India, and Russia• China could be one of the largest markets, and therefore thecompany will focus on Beijing and Shanghai.o Large urban populationo Rising economyo Increase in coffee consumptiono Co-branding with other manufacturers of food and drinks and brand-franchising to manufacturers of other goods and servicesCreates loyalty for Starbucks brandRecently signed agreement with Jim Beam Brands to develop andmarket a Starbucks-branded coffee liqueur drink (DataMonitor), whichhas strong revenue potential because:• Liqueurs represent $4-5 billion opportunity (DataMonitor).• Liqueurs with coffee represent a considerable segment of theliqueur market.• There is a significant overlap between consumers of liqueursand consumers loyal to the Starbucks brand (DataMonitor).o Growth in coffee markets: Starbucks has a market share of over 40% of thespecial coffee market (DataMonitor). Therefore growth in this category would
result in considerable opportunities for further growth and expansion in thenear future.• Threatso Coffee may not stay in favor with customers, and another type of beverage orleisure activity could replace it.o Rises in the costs of dairy products could affect the company’s margins.o CompetitionCompetitive coffee shopsCopy cat brandsRestaurantsStreet cartsCompetition could enter the market at any time.• The U.S. specialty coffee market continues to grow, and anincreasing number of firms are looking to enter.• At any time, a company with greater financial, marketing, andoperating resources could enter the market and competedirectly with Starbucks.o Volatile nature of the coffee marketMultiple factors, including weather, political, and economic conditionsfor example, can potentially negatively affect the company’s business.Green coffee prices may be affected due to agreements establishingexport quotas or restricting global coffee supplies.o Slowing U.S. retail salesDomestic retail accounts for about 75% of the company’s revenuegrowth and an even greater proportion of profit growth (DataMonitor).If current U.S. store growth continues, saturation levels within theNorth American division may be reached within five years. Beforereaching this point, US retail sales growth will slow significantly(DataMonitor).
• Competitiono Competition comes in several forms:Independent/Local coffee shopsSocial and inclusiveDiverse and intellectualArtsy and funky, typically cozy and very welcomingLiberal and free-spiritedLingering encouragedParticularly appealing to younger coffee house customersWide variety of beverages/foodAppeals to the non-traditional crowdFranchise/Large Companieso Generally well-recognized names (McDonald’s, Krispy Kreme,Dunkin’ Donuts, etc.)o More convenient and accessibleo Easy access in and outo Appeals to the more mainstream coffee drinkers• Services (Company)o Starbucks purchases roasts of the highest quality of whole bean coffees.o Fresh and rich brewed Italian espressoo Offers pastries and other appetizing confectionso Sells coffee-related accessories (mugs, coffee makers, cups, espresso, etc.)o Expanded sales into supermarkets of whole bean coffee
o Introduction the widely popular drink, Frappuccino, to the publico Strives for satisfied customers and a welcoming environmento Works to have highest standards of excellence in way of businesso Offers newspapers and other reading material, popular music, and Internetaccess (provided by T-Mobile)• Keys to Success (Company)o Rapidly expand retail operationso Growth in its specialty sales and other operationso Selectively pursue opportunities to leverage the Starbucks brand through theintroduction of new productso Continue to be widely available and welcomingo Maintain reputation for having specialty and gourmet coffeeo Make customers feel welcome with friendly service• Critical Issues (Moon)o Must increase customer satisfaction through improvements to serviceo Friendlier and more attentive staffo Faster and more efficient serviceo Increase in personal treatment (remember customer’s name and order)o More knowledgeable staffo Better overall serviceo Offer better prices/incentive programsFree cups after “x” number of visitsReduction of priceOffer promotions, sales to increase customer satisfaction
o OTHEROffer better quality and variety of productsImprove atmosphere (friendly, welcoming)Reaching out to community through involvement and awarenessMore stores and convenient locationso Other critical issues Starbucks is criticized for and must be aware of are:ClusteringDriving out independentsLoss of diversityIts policy toward farming communities in developing countriesFair tradeMany of these issues are vital for Starbucks to improve theircustomers’ satisfaction (Simmons).Critical Issues21%28% 34%31%Increase CustomerSatisfaction throughImprovements toServiceOffer BetterPrices/IncentiveProgramsOTHERUndecided/AlreadySatisfiedSlice 5Marketing Strategy
• Starbucks Mission Statement (Company)“Establish Starbucks as the premier purveyor of the finest coffee in theworld while maintaining our uncompromising principles while we grow.The following six guiding principles will help us measure theappropriateness of our decisions:o Provide a great work environment and treat each other with respectand dignity.o Embrace diversity as an essential component in the way we dobusiness.o Apply the highest standards of excellence to the purchasing, roasting,and delivery of our fresh coffeeo Develop enthusiastically satisfied customers all of the time.o Contribute positively to our communities and our environment.o Recognize that profitability is essential to our future success.”• Environmental Mission Statement (Company)“Starbucks is committed to a role of environmental leadership in all facetsof our business.We fulfill this mission by a commitment to:o Understanding of environmental issues and sharing information withour partners.o Developing innovative and flexible solutions to bring about change.o Striving to buy, sell, and use environmentally friendly products.o Recognizing that fiscal responsibility is essential to our environmentalfuture.o Instilling environmental responsibility as a corporate value.o Measuring and monitoring our progress for each project.o Encouraging all partners to share in our mission.”
• Other points of importance to Starbucks:o “Building customer loyalty around cappuccinos, lattes, and other fancybeverages,” (Overholt).o Want to create a sense of communityo Want to create a memorable experience for a customer that inspires thecustomer to return often, as well as to tell a friendo Striving to become the most recognized and respected brand in theworldo Putting people before products (Company)o What a Starbucks store should be: “An authentic coffee experiencethat conveyed the artistry of espresso making, a place to think andimagine, a spot where people could gather and talk over a great cup ofcoffee, a comforting refuge that provided a sense of community, athird place for people to congregate beyond work or the home, a placethat welcomed people and rewarded them for coming, and a layout thatcould accommodate both fast service and quiet moments”(Thompson).• Marketing Objectives (Moon)o To create a Starbucks experience that makes people come for the coffee,stay for the ambience and environment, and return for the connectiono To build an image separate from smaller coffee chainso To clearly communicate the values and commitments of the Starbucksbusiness to their customers, instead of only growth plans publicized in themedia• Financial Objectives (Moon)o Have each store reach a $20,000 weekly sales levelo Open new stores with lower store-opening costs (about $315,000 per storeon average).• Target Marketing (Moon)
o Based on a sample of Starbucks’ 2002 customer base, the attitudes towardthe brand were:NEWCUSTOMERS(FIRST VISITTHIS YEAR)EXISTINGCUSTOMERS(FIRST VISIT 5+YEARS AGO)High-quality brand 34% 51%Brand I trust 30% 50%For someone like me 15% 40%Worth paying more for 8% 32%Known for specialty coffee 44% 60%Known as the coffee expert 31% 45%Best-tasting coffee 20% 31%Highest-quality coffee 26% 41%Overall opinion of Starbucks 25% 44%o The chart shows that the new customers have a poorer attitude towardStarbucks in every category than the existing customers.o The new customer type that needs attention is:45% female, 55% maleAverage age of 3637% have a college degreeAverage income is $65,000Drink an average of 15 cups of coffee per week• Store Expansion Strategy (Thompson)o Target areas with favorable demographic profiles, as well as areas that canbe serviced and supported by the company’s operations infrastructure.For each targeted area, select a large city to serve as a focal point.• Goal of each focal city: Open 20 or more stores in that cityin the first two years.• Once stores cover the city, open additional stores insmaller, surrounding areas in the region.With this plan, the company had only closed 2 of the 1,500 sites ithad opened between 1992 and 1997.
o Stores must be custom-designed.The company does not buy freestanding structures, and thereforeeach store is a different shape and size.Most stores range in size from 1,000 to 1,500 square feet.o Most stores are located in high-trafficked, high-visibility areas, such as:Office buildingsDowntown and suburban retail centersAirport terminalsUniversity campusesBusy neighborhood shopping areas convenient to pedestrian traffico International expansion (Moon)As of 2004, the company operated over 300 company-ownedstores in the United Kingdom, Australia, and Thailand, as well as900 licensed stores in Asia, Europe, the Middle East, Africa, andLatin America.Goal: Have 15,000 international storeso Other things to consider:KiosksDrive-through windows• Positioningo Store AmbienceGoal: To make customers want to lingerSocial Appeal—Offer a sense of community, a place where peoplecan come togetherPhysical layout• Seating areas to encourage lounging
• Appear upscale yet invitingAromas• Smoking is banned in all stores• Employees are asked to refrain from wearing perfumes orcolognes, and prepared foods are kept covered socustomers would only smell coffee aromas.Sounds• Play soothing CDs that are also for sale• Often offer live musico Customer ServiceThe company sees a direct link between customer satisfaction andcustomer loyalty.The company believes that employee satisfaction leads to customersatisfaction (Moon).• Voted onto Fortune’s Top 100 Places to Work• Employee satisfaction remains consistently around 80-90%.• Turnover rate is 70%, one of the lowest in the industry• Focuses on manager stability in order to decrease employeeturnover, but also to help recognize regular customers andprovide personalized servicesEmployees are trained to connect with customers and focus on“customer intimacy.”• Greet customers with a smile.• Enthusiastically welcome customers into the store.• Establish eye contact.• Try to remember customers’ names and orders if they arefrequent customers.
“Just Say Yes” policy, in order to keep the customer happy, whichmay go beyond store rules• Example: Always compensate dissatisfied customers witha Starbucks coupon entitling them to a free drink• Example: Give a customer a free refill if he/she spills theirdrink.o Advertising—The company spends very little on advertising and dependson word-of-mouth promotion.o Involvement in the CommunityContributing positively to surrounding communities is one ofStarbucks’ guiding principles in the company’s mission statement.Howard Schultz had the plan to “build a company with soul(Student).Starbucks has been the largest corporate contributor in NorthAmerica to CARE, a worldwide relief and developmentorganization to help Third World countries where Starbuckspurchases its coffee supplies.The company has an Environmental Committee that looks forways to reduce, reuse, and recycle waste, as well as contribute tolocal community environmental efforts.The company donated almost $200,000 to literacy improvementefforts (Student).Starbucks has many community building programs to “contributepositively to the communities where our partners (employees) andcustomers live, work, and play” (Corporate).“As part of Starbucks ongoing commitment to share the comfort ofcoffee during times of crisis, the company continues todemonstrate our support of the men and women serving in the U.S.military overseas” (Company).The Starbucks Foundation (Company)• Established in 1997 by Howard Schultz
• Inspired by Schultz’s childhood experiences and those ofother inner city children• Dedicated to creating hope, discovery, and opportunity inthe communities of Starbucks• Marketing Mix• Marketing Researcho Schultz wanted to use research in order for Starbucks to challenge thestatus quo, be more innovative and take bigger risks.o Examples of questions he asked were (Moon):What could Starbucks do to make its stores an even more elegant“third place” that welcomed, rewarded, and surprised customers?What new products and new experiences could the companyprovide that would uniquely belong to or be associated withStarbucks?What could coffee be – besides being hot or liquid?How could Starbucks reach people who were not coffee drinkers?What strategic paths should Starbucks pursue to achieve itsobjective of becoming the most recognized and respected brand ofcoffee in the world?o At the retail stores, a pamphlet is available for customers to share theirthoughts about their Starbucks experience. *See Exhibit 1o Starbucks uses “Customer Snapshots,” similar to mystery shoppers, toevaluate partner performance in the retail stores (Moon).The four basic service evaluations include:• Service – Did the register partner verbally greet thecustomer? Did the partners make eye contact with thecustomer? Say thank you?
• Cleanliness – Was the store clean? The counters? Thetables? The restrooms?• Product Quality – Was the order filled accurately? Was thetemperature of the drink within range? Was the beverageproperly presented?• Speed of Service – How long did the customer have towait? The company’s goal was to serve a customer withinthree minutes, from back-of-the-line to drink-in-hand.2001-2003 Customer Snapshot Scores (North American Stores):Financials• Recent Financial Informationo Attached is a graph from www.starbucks.com, showing historicalrevenues dating back to the 1995 fiscal year up to the 2006 fiscal year.*See Exhibit 2
Starbucks CorporationAnnual Income Statementsamounts in millions of US dollars (except per share amounts)Year RevenueGrossProfitOperatingIncomeTotal NetIncomeDiluted EPS (NetIncome)Sept. 05 6,369.3 3,764.1 780.6 494.5 0.61Sept. 04 5,294.3 3,102.8 608.2 390.6 0.47Sept. 03 4,075.5 2,389.6 424.7 268.4 0.34Quarterly Income Statementsamounts in millions of US dollars (except per share amounts)Year RevenueGrossProfitOperatingIncomeTotal NetIncomeDiluted EPS (NetIncome)June 06 1,963.7 1,158.8 214.6 145.5 0.18Mar. 06 1,885.8 1,124.9 201.9 127.3 0.16Dec. 05 1,934.1 1,156.0 279.9 174.2 0.22Sept. 05 1,659.2 980.3 196.4 123.6 0.16June 05 1,601.8 952.0 199.6 125.6 0.16source: Hoovers, Inc. 2006. D&B Company. 4 Dec. 2006 <http://hoovers.com>.Starbucks CorporationAnnual Balance Sheetamounts in millions of US dollars (except per share amounts)Sept. 05 Sept. 04 Sept. 03AssetsCurrent Assets
Depreciation & Amortization 377.3 325.6 256.3Capital Expenditures (644.0) (412.5) (365.3)Cash Dividends Paid -- -- --source: Hoovers, Inc. 2006. D&B Company. 4 Dec. 2006 <http://hoovers.com>.Starbucks CorporationEarnings EstimatesPeriodPeriodEndsMeanEPS# ofEstimates Year Ago ActualQ1 Dec. 06 0.26 17 0.17Q2 Mar. 07 0.19 16 0.18Q3 Jun. 07 0.22 16 0.16Q4 Sept. 07 0.22 16 0.22P/E Ratio: 39.795-Year Growth Rate: 26.55source: Hoovers, Inc. 2006. D&B Company. 4 Dec. 2006 <http://hoovers.com>.Starbucks CorporationComparison To Industry & MarketValuation Company Industry1Market2Price/Sales Ratio 1,963.7 1,158.8 214.6Price/Earnings Ratio 1,885.8 1,124.9 201.9
Price/Book Ratio 1,934.1 1,156.0 279.9Price/Cash Flow Ratio 1,659.2 980.3 196.41Industry: Eating and Drinking Places2Market: Public companies trading on the NYSE, AMEX, and NASDAQTop CompetitorsStarbucks Diedrich Coffee DunkinNew WorldRestaurantsAnnual Sales 6,369 59.5 517.0 389.1Employees 115,000 -- 953 7830Market Cap ($ mil.) 27,047 17.9 0.0 0.0source: Hoovers, Inc. 2006. D&B Company. 4 Dec. 2006 <http://hoovers.com>.Controls• Problems and Solutions (Moon)o In 2002, our fellow associates, including Christine Day, recognized thatcustomer service needed to be improved upon, and one idea to conquerthis problem was to invest $40 million annually in 4,500 stores.o By adding almost $9,000 to each store, this would allow an additional 20hours of labor per week.o Day said, “The idea is to improve speed-of-service and thereby increasecustomer satisfaction.”o According to a survey of customers, 65% believed fast service was a keyattribute to their satisfaction.
o In the past when we thought of adding more labor hours to our retailstores, we decided against it due to the struggling economy, especiallysince labor was already our biggest expense.o Another option instead of increasing labor hours is to increase theefficiency of the partners that we currently employ. We removed the non-value-added tasks, simplified the production process, and manipulated thestore layout to take better advantage of store space.o Additionally, we installed an automatic espresso machine that was faster,reduced waste, and improved consistency while still fulfilling ourcustomer’s needs. We want to continually implement the use of thesemachines in more of our stores.o Furthermore, we want to add more drive-thru lanes to our stores. In doingso, we can still serve our customers who want a taste of Starbucks on-the-go.• Marketing Organizationso Although we have been considered one of the world’s most effectivemarketing organizations, we lack a strategic marketing group (Moon).o Instead, we have smaller divisions (Moon):Market research group – gathered and analyzed market dataCategory group – developed new products and managed the menuMarketing group – developed quarterly promotional planso However, we need to find a way to get these divisions to collaborate soinformation about market and customer trends is not overlooked like it has
been in the past and we can make better decisions about driving ourbusiness in the future.o In 1995, a “Stores of the Future” project team was formed (Student).Their goal was to come up with the next generation of Starbucksstores to be debuted in 1996.Schultz communicated with the team and envisioned the retailstores to look and feel like, “an authentic coffee experience thatconveyed the artistry of espresso making, a place to think andimagine, a spot where people could gather and talk over a greatcup of coffee, a comforting refuge that provided a sense ofcommunity, a third place for people to congregate beyond work orthe home, a place that welcomed people and rewarded them forcoming, and a layout that could accommodate both fast service andquiet moments.”The team researched the art and literature of coffee throughout theages, studied coffee-growing and coffee-making techniques, andlooked at how our retail stores have already evolved in terms ofdesign, logos, colors, and mood.The team decided upon four store layout designs:• A store for each stage of coffee making: growing, roasting,brewing, and aroma.• Each store had its own color combinations, lightingscheme, and component materials.• Also, the stores adapted to the environment, whether thestore was downtown or on a college campus, for example.• Contingency Planning• Time ImplementationReferences"Company, The." Starbucks. 2006. 4 Dec. 2006 <www.starbucks.com>.
"Corporate Social Responsibility." Starbucks Coffee. 2006. Starbucks Corporation. 4Dec. 2006 <http://www.starbucks.com>.Moon, Youngme, and John Quelch. Starbucks: Delivering Customer Service. HarvardCollege. Boston: Harvard Business School, 2003. 1-20.Overholt, Alison. "Thinking Outside the Cup." Fast Company. July 2004. MansuetoVentures LLC. 3 Dec. 2006 <http://www.fastcompany.com>.Simmons, John. "Starbucks: Supreme Bean." Brand Channel. 21 Nov. 2005. 6 Dec. 2003<www.brandchannel.com>.“Starbucks Corporation.” Hoovers, Inc. 2006. 4 Dec. 2006.<www.hoovers.com/starbucks>“Starbucks Corporation." Student Resources. 2006. McGraw-Hill. 3 Dec. 2006<http://www.mhhe.com>.Thompson, Arthur A., and John E. Gamble. "Starbucks Corporation." 1999. TheMcGraw-Hill Companies. 3 Dec. 2006 <http://www.mhhe.com>."Starbucks Corporation." DataMonitor. 2005. 3 Dec. 2006<http://www.alacrastore.com>."SWOT Analysis Starbucks." 2006. Marketing Teacher Ltd. 3 Dec. 2006<http://www.marketingteacher.com>.