Starbucks A Just another company?

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Starbucks A Just another company?

  1. 1. INTERNATIONAL EXPANSION OF STARBUCKS CORPORATION <ul><li>Purpose :- Continue growth of the business & earn higher profits </li></ul><ul><li>Expansion focused in </li></ul><ul><li>1. North American countries </li></ul><ul><li>2 .Non North American countries </li></ul>
  2. 2. Qualities of Local Partners <ul><li>Similar philosophy. </li></ul><ul><li>Multi unit restaurant experience. </li></ul><ul><li>Financial resources to expand the business. </li></ul><ul><li>Real estate experience. </li></ul><ul><li>Knowledge of the retail market. </li></ul><ul><li>Availability of the commitment. </li></ul>
  3. 3. STEPS OF STARTING THE INTERNATIONAL STORE <ul><li>Consider geographic, branding & financial factors. </li></ul><ul><li>Categorize the site from “A” to “D”. </li></ul><ul><li>Send the site package to the International Market Business Unit (MBU). </li></ul><ul><li>Design the store. </li></ul><ul><li>Initiate the construction of the store. </li></ul><ul><li>Begin the store operations. </li></ul>
  4. 4. Primrose Hill store in London <ul><li>Historical area in the England. </li></ul><ul><li>Residents are mostly the artists. </li></ul><ul><li>Residents & Local authorities were opposed to the Starbucks entrance. </li></ul><ul><li>Have negative media coverage against the Starbucks. </li></ul><ul><li>Firm had to withdraw the store. </li></ul>
  5. 5. Forbidden city store in China <ul><li>It is the historical city in Beijing, China. </li></ul><ul><li>More residents were opposed. </li></ul><ul><li>High negative media coverage forced to the business. </li></ul><ul><li>But local authorities gave support to the Starbucks. </li></ul>
  6. 6. FINANCIAL MEASURES 0.54 190.4% 2002 0.46 192.5% 2001 0.24 189.6% 2000 0.27 175.5% 1999 0.19 164.0% 1998 Earning Per Share (EPS)-US$ Return On Capital Employed (ROCE) Year
  7. 8. STARBUCKS STORES GROWTH FROM 1987 TO 2002
  8. 9. Starbuks’ Strategies & Key Success Factors <ul><li>General Administration </li></ul><ul><ul><li>Everywhere Approach </li></ul></ul><ul><ul><li>Market segmentation </li></ul></ul><ul><ul><li>Policy of “never eliminate or hurt the competition” </li></ul></ul><ul><ul><li>Policy of “never under price the product” </li></ul></ul><ul><ul><li>Location of the store </li></ul></ul><ul><ul><li>Appearance of the Store </li></ul></ul><ul><ul><li>Synergetic Effect </li></ul></ul>
  9. 10. <ul><li>Cont. </li></ul><ul><li>Value Chain Activities </li></ul><ul><ul><li>Quality of raw materials </li></ul></ul><ul><ul><li>Experiments on balance of composition of raw materials </li></ul></ul><ul><ul><li>Vertical Integration </li></ul></ul><ul><ul><ul><ul><li>Multiple Roasting Process </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Multiple Testing Methods </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sample based Testing Techniques </li></ul></ul></ul></ul><ul><ul><li>Multiple Channels of Distribution </li></ul></ul><ul><ul><li>Minimum Spending on Advertising </li></ul></ul><ul><ul><li>Strong Relationships with Raw material Suppliers </li></ul></ul><ul><ul><li>Empowered Employee Culture through Generous Benefits Programs </li></ul></ul>
  10. 11. Cont. International Expansion <ul><ul><li>Partnership focused International Expansion </li></ul></ul><ul><ul><li>Variation in product categories based on the country </li></ul></ul>

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