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Essay on Starbucks Case Study
Question 1 Overall, Starbucks' performance has been mixed over the past six months. On April 13, 2012, its stock price reached a high of $61.67
per share and closed at $57.37 per share. Since April, the price of Starbucks' stock fell on average in the following closing months of May and June
before reaching a low of $43.16 in the opening days of August. The fall was correlated with the release of Starbucks' third quarter annual report, which
showed a less–than–expected performance for that quarter; the earnings per share were $0.43 compared to a market expectation of $0.45 (Baertlein).
Since then, the price of Starbucks' stock has gradually increased. Although market risk factors like decreased consumer spending may have impacted
...show more content...
4 Yahoo!Finance)
n. Raw beta = 1.201 (p. 2 Bloomberg)
o. Risk premium = 5.5% (given)
p. Cost of debt = 2.82% (p. 2 Bloomberg)
q. Effective tax rate = 38% (given)
r. Under the linear decline model, the equity value per share is $55.59, while the current stock price is $51.07. Based on our evaluation, the current
stock price is undervalued. Under the exponential decline model, the equity value per share is $47.63, while the current stock price is $51.07. Based
on our evaluation, the current stock price is overvalued.
Question 3
a. Current year EPSO = Earnings per share – basic
b. Year 1 Consensus EPS Forecast (p. 3 Bloomberg)
c. Year 2 Consensus EPS Forecast (p. 3 Bloomberg)
e. Under the linear decline model, the final valuation of the equity per share is $52.70, while the current market price per share is $51.07. Based on
our evaluations, the stock is undervalued. Under the exponential decline model, the final equity value per share is $45.10, while the current market
price per share is $51.07. Based on our evaluation, the stock is overvalued.
Question 4 The Free Cash Flow For The Firm (FCFF) approach based on the linear decline most accurately reflects the value of Starbucks. The capital
structure of Starbucks has been fluctuating. For example, in 2007 and 2008, Starbucks' debt ratios were about .57 and .56 respectively; for those years,
over 50% Starbucks' assets were provided via debt. However, in 2009, 2010, and 2011, Starbucks' debt
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Case Study #1: Starbucks Essay
Case Study 1: Starbucks
1. What are the barriers facing Starbucks as they try to "teach" people to change their consumption habits from tea and instant coffee?
a. China is country with a population of about 1.3 billion people. It is considered a tea–drinking nation rather than a coffee–drinking nation. This is
partly due to the benefits that tea is believed to offer, which include medicinal qualities that coffee does not have. As a result, Starbucks has the barrier
of tradition in their way. Chinese people are set in their ways with drinking tea and it will be difficult to sway them towards drinking coffee. There is
also the barrier of competition including the "fresh–ground" market including coffees from Hong Kong, Canada, the...show more content...
All in all Starbucks must examine the new market and answer the needs of the culture involved to fully succeed.
3. What encompasses the Starbucks "experience" that so many companies try to emulate?
a. We believe that Starbucks places a high importance on quality customer service and uniformity so that one gets the same experience at every
Starbucks. Starbucks strives to create an atmosphere that makes one feel comfortable, warm and safe– a home away from home. They make the
customer feel welcome the moment they step in the door. A few, the regulars, are lucky enough to have his/her drink ready by the time he/she gets to
the cash register– true customer service! Uniformity and efficiency is a big part of the Starbucks experience. Their mission is to create the perfect
cup of coffee every time at every location. With an endless amount of choices everyone is bound to find something to fit his/her taste, whether he/she is
a coffee drinker or not.
4. Innovation analysis of Starbucks and coffee into the Chinese market:
Diffusion DeterminantDiffusion InhibitorDiffusion Enhancement Strategies
1. Nature of groupCollectivistTarget innovators and ones who have shown to enjoy coffee
2. Type of decisionIndividual Target the individual with advertising
3. Marketing effortBroadMarket anywhere that you can, target the innovators
4. Felt needWeak/Moderate
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Essay on Starbucks Strategic Plan
Executive Summary Starbucks Corporation success in the coffee business has arguably been the most successful coffee chain in the past few decades.
The company has been able to continue to attract customers even though they are not positioned as the lowest cost provider of coffee. Starbucks has
been able to aggressively expand the business by attracting investors as well as selling their coffees for premium prices and increasing their
profitability. The rapid growth ofStarbucks has become a testament to the success of the expansion strategy that was developed back in 1992 and 1993
when Starbucks developed a three year expansion strategy (Shah, Hawk, & Thompson, 2010). This strategy focused on areas that had the demographic
targets...show more content...
In 2013, Starbucks opened nearly twenty–two hundred new stores. As witnessed by the sharp increase in the number of new stores being opened in
2013 Starbucks has clearly committed to their global expansion plan and objective of being the most recognized and respected brand in the world
(Starbucks Corporation, 2013). This expansion philosophy is now viewed as being responsible growth and maintaining shareholder value through the
expansion process. Starbucks strategy has been to delivery not only great tasting consistent coffee but to provide a cool, cozy relaxing environment
providing that "feel–good" experience. This concept has been well received with the young hip professional crowd and even those middle aged
folks that have the disposable income to afford the cost of a specialty cup of coffee. Over the last two decades Starbucks has been able to not only
attract the "yuppies" but also has been successful in drawing the professional and executive and elder people from all walks of life. Everyone
appears to want to have the "Starbucks experience" even at the price of their coffee. Starbucks growth strategy is also supplemented by new product
offerings in the specialty drink area, as well as several different product offerings at their various store locations. Since May of 2009, Starbucks has
been on a recovery path from the down turn that they experience in the mid 2000's. As competitors like Dunkin Donuts
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Starbucks Essay
Yadira Celaya
Starbucks Final Essay
5/30/13
Starbucks Final Essay
The three major stakeholders for Starbucks are their suppliers, employees, and customers. The external stakeholders of Starbucks are the suppliers and
customers, while employees are internal stakeholders. Starbucks Company follows valuable practices and good citizenship in order to motivate its
stakeholders. The company is motivated to help create a better future for coffee, communities and the farmers. This is established based on a shared
interest to endure the making of high quality coffee. Starbucks builds and maintains morale in its business to its stakeholders by using the content,
process and reinforcement theories. The company uses Maslow's need of hierarchy...show more content...
They expand the business competency by practicing the fair trade operatives. They also deliver clearness to the farmers level and if they cannot be
there personally they will send in an intermediary to negotiate a price with the farmer. The major 21st century challenges Starbucks and other coffee
sellers have faced are competitive advantage, diversity, globalization, information and technology. Starbucks has used competitive advantage to stay
ahead of its rivals. This organization out performs its competitors by producing effective quality coffee to its customers and including diversity, "At
Starbucks, we strive to create a culture that values and respect diversity and inclusion. We expect to be a leader in diversity and inclusion, from our
partners in the field to our senior leadership teams," (Starbucks Corporation, 2013). They are also expanding with other distributions, however,
globalization has helped to establish Starbucks as an international company and globalization is vital to successful companies. Starbucks has made any
adjustments that are necessary in order to succeed outside of America, they have taken their time to understand the differences within other countries.
Starbucks has also managed information technology by having their own website full of information about their company and their coffee. You can
make purchases online and they also offer free Wi–Fi at their local shop locations.
Overall Starbucks has become a very effective
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Essay on Starbucks Company Overview
Starbucks Company Overview
Starbucks, a well–managed assertive company, has consistently achieved growth since its early beginnings. Starbucks is the largest retailer of specialty
coffee drinks and coffee beans in the nation sold through company–owned retail outlets and supermarket chains (Starbucks Corporation, 2009). The
Starbucks name has earned its place as an innovative organization that represents a sense of community and shared ideals among its customers, its
employees, and the world at large and its brand is equivalent to quality. By combining its well–known name and brand with focused superior customer
service, Starbucks is positioning itself in the market with enhancing both its product line and its marketing channels since it...show more content...
By August of 1987, Howard Schultz bought Starbucks for $4 million dollars. On August 18, 1987, the Starbucks as we know it was born. By 1990,
Starbucks had opened 84 stores. On June 26, 1992, Starbucks went public and was listed on the NASDAQ with a price of $21 a share. Starbucks for
the next decade continued to expand its' stores domestically and internationally. Starbucks also continued to widen their menu selections by offering
food and specialty drinks. By the end of 1999, Starbucks had opened 2,498 stores. By 2007, Starbucks opened 15, 756 stores. From 2000 to current
year, Starbucks continues to be the leader in the coffee industry.
Market
Role of Government Regulations
Government regulations has major implications in different aspects of Starbucks' business. First of all, being a publicly listed company, government
regulations has major implications on financial reporting and accounting activities of the company. For example, Starbucks need to comply with strict
government regulations such as Sarbanes Oxley Act of 2002 and other SEC/US GAAP related compliance issues pertaining to financial reporting and
accounting policies. (Sutherland Asbill & Brennan LLP, April 2003, p. 1) Non adherence to such regulations can result in significant penalties and
fines for Starbucks. Government regulations also play an important role in global business of Starbucks, such as import of raw materials like Coffee
and international operations of the company. Changes in
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Starbucks Advertising Essay
Starbucks advertisement
Starbucks is really well known and also believed to be the leading coffee company in the universe. Starbucks is the one of the successful examples to
build a good reputation through social media. Starbucks heavily promotes ethical practices throughout the media to create a halo effect. So, Starbucks
gains customer's trust. Starbucks has put different types of Sales Promotion across the country and other nations with hopes of motivating more
customer to purchase, especially in times of economic hardships where people are less likely to buy. The coffee company uses all forms of different
sales promotion. For instance, Starbucks offered 50% off Frappuccino from 3pm until 5pm on 6 May 2015 in Malaysia. This promotion is...show more
content...
The primary use for this encouragement is for preserving the woods. Founded on research, Americans drink 100 billion cups of chocolate per year. At
least 14.4 billion are served in disposable paper cups. Most of their paper cups are un–recyclable due to the plastic lining inside the cup. Aims for
Starbucks by 2015 are they launch 100% recyclable cup and their coffee must be 100% ethically sourced. The causes they promote good ethics are
portraying a serious public image of the company and want to protect image as being a socially responsible governance and a good option for
consumers. Other than that, Starbucks wants to increase focus on ethical and moral issues in business generally. In addition, Starbucks makes it a
priority to always pay coffee farmers proper wages for the chocolate that they produce. They even travel as far as buying all the coffee that one
specific farmer can bring forth to make a coffee unique and exclusive to Starbucks. Non only does Starbucks work with the coffee farmers that they are
purchasing from, but they also play with the local governments to ensure fair treatments, and social conditions. They suffer with these governments
frequently to ask for aid to be socially responsible. In return, Starbucks does their best to help them by building schools and education programs.
According to the individualism theory Starbucks would be considered ethical because
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Essay on Starbucks: Organizational Culture
Starbucks:
Organizational Culture When people think of the most popular coffee house in the country and world, they immediately think of Starbucks.
That's because it's true, but what most people don't know is that Starbucks is also ranked #1 on the Most Admired Food Services Companies to
work for (America's most admired companies 2007, 2007), and # 16 Best Companies to work for (Best companies to work for 2007, 2007). It also
ranked # 2 Most Admired Companies to work for over all, # 6 for Best People management, # 7 for Best Social responsibility, and # 10 for Best
Innovation (America's most admired companies 2007, 2007). These are incredible numbers, which is why I choose Starbuck's as the most culturally
appealing company that I would...show more content...
These values include respectful working environments, environmental awareness, humane treatment of workers, and benefits for workers. Starbuck's
mission is to not only offer premium quality coffee and excellent customer service, but it is also devoted to providing quality service to its employees.
Starbucks works hard to create an excellent work atmosphere, ensuring that employees treat one another with deference, and respect diversity.
Starbucks also shows how much it cares about society by making over 30 million in charitable contributions and volunteering over 290,000 hours
(Corporate social responsibility / fiscal 2006 annual report, 2007). There are thousands of people who work for this company as farmers and suppliers
who are located all over the world. Starbucks makes certain to follow international child labor laws, provide humane and safe working conditions, and
honors minimum wage requirements. Starbucks is also deeply focused on being environmentally vigilant. Starbucks practices energy and water
conservation, uses renewable energy, and uses recyclable materials. Starbucks also provides excellent benefits. "The components may include
competitive base pay, bonuses, comprehensive health coverage, income protection, vacation, stock options, a savings program, adoption benefits,
tuition reimbursement and partner perks, including a discount on merchandise in our stores" (Corporate social responsibility / fiscal 2006 annual report
, 2007, Abridged Report,
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Reflective Essay On Starbucks
Around 8 pm on March 11, 2016, my sister and I decided to grab a coffee from Starbucks. I believe that Starbucks is a perfect example of a location
where diverse people consisting of different generations hang out, meet, transact, communicate and study. Starbucks is open for masses to stay in as
long as they want while drinking a good cup of coffee. I was fortunate enough that during the time of my observation a lot was going on. With the
learning I have grasped from our lessons, I was able to see various concepts that are under the topic Communication: An Introduction.
The five fundamental characteristics were seen on the site. The first situation, I recognize is the exchange of meaningful symbols. The people used
distinct ways to exchange symbols. An example of which is when...show more content...
I could observe that people were working on documents; it may be for work or for school. In addition, there were people who were reading the daily
newspaper. With that, I noticed that aspect of information was present. They use liable data to gain new knowledge for future purposes. On the other
hand, entertainment was prominent in the area. A clique was laughing about a joke a member shared. This made their discussion livelier and buoyant.
On the other hand, instruction was visible in the field. The students were studying study due to the fact that the coffee shop had excellent ambiance.
They used instructional devices such as textbooks, handouts and computers to boost their intelligence. While one table consists of a student and a
mentor. The mentor was sharing insights and explaining the study they were focusing on. In fact, manager and staff relationship could also be an
example, wherein the manager advised his staff about the customer's orders. I only witnessed one case of persuasion, where I overheard a girl inviting
her to visit a club after having their
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Essay on STARBUCKS COFFEE
I. Strategic Problem: How can Starbucks Coffee Corporation continue to provide exceptional employee benefits package while pursuing a globalization
strategy?
II. Analysis of the Problem:
A. Company Background and History:
1. Founders.
a. Starbucks began in 1971 when three scholars–English teacher Jerry Baldwin–history teacher Zev Siegel, and writer Gordon Bowker– opened a store
called Starbucks Coffee, Tea and Spice in the touristy Pikes Place Market inSeattle.
b. The inspiration and mentor for the Starbucks venture in Seattle was a Dutch immigrant named...show more content...
e. Schultz left Starbucks left in 1985 to start his own company.
f. In March 1987, Howard Schultz, president and CEO, took Il Giornale Coffee Company to form Starbucks Corporation.
B. Overview of Retail Industry
1. Financial Situation and Performance.
a. Starbucks goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest coffee and related products,
and by providing superior customer service.
b. Company–operated retail stores accounted for approximately 85% of net revenues during fiscal 2003.
c. Specialty Operations accounted for approximately 15% of net revenues in fiscal 2003.
d. Starbucks went public on June 26, 1992 at $17 per share, or a split adjusted price of $1.0625 for the company's four subsequent 2–for–1 stock splits
(wwww.starbuckscoffee.com).
e. Comparing Starbucks financial ratios to that of the Industry can give us a general
perspective of Starbucks financial strength. This could also give some indication of stock price performance.
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Essay on starbucks industry analysis
Starbucks Industry Analysis
The coffee and snack shop industry includes thousands of mom and pop shops to a small number of franchised businesses. The U.S. Census Bureau
estimates that nearly half of this industry, 48.0%, of establishments are small business owners with nine or fewer employees. The top four players in
the industry are Starbucks Corporation, Dunkin' Brands Inc., Krispy Kreme Doughnut Corporation and Einstein Noah Restaurant Group, which
currently dominate 64.8% of the market.
When it comes to the restaurant industry, many companies have seen their profits and financials in whole decrease. One segment of this industry, the
coffee and snack shop industry, experienced the same. Since 2009 players in this sector have...show more content...
Convenience food locations are plentiful and well–advertised, and it is because of this that they continue to compete within the coffee and snack shop
industry.
Healthy Eating
The specialty coffee industry is modifying the products that it offers, as well as its services. With consumers demanding healthier eating options, it is
up to the companies in this industry to decide which route they will go. Consumers are now more aware of the health issues that are associated with
fatty foods and are going out of their way to avoid them. This includes spending the extra money on healthier alternatives. Many chains have already
introduced their new healthy alternative, with more in the works as they look to expand their product lines. Major operators such as Starbucks, have
already expanded their profits by providing a variety of menu options, including oatmeal and breakfast sandwiches. While major fast food chain
McDonald's has increased their hand in the stake by expanding their premium coffees.
Coffee Consumption
Another force that may affect the industry in the next five years is that per capita coffee consumption is expected to decrease slowly in this year. This
poses a potential threat in the fact that coffee shops and other establishments that serve coffee are a major portion of the industry revenue.
Economic Forecast
Industry analysts are expecting that in the five years to 2018 revenue will increase at an average
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Starbucks
The ideal requirements were also based on the maximum density of Starbuck shops located within the town centre area for the city of Chicago; a total
of 48 places were designed within the town centre business region areas (Starbucks in Illinois/Chicagoland May 21, 2011). The technique for applying
Coffee house distribution support concept to clients will be through in–store discounts, email advertising, on–line applications for smart–phone
customers, television advertisements, paper ads as well as through Coffee house website and Facebook social networking network. Customers will be
able to register their on–line information to perform and house details to locate the providing Coffee house shops near them.
Majority of the growth decision revolves around the concept of maximizing shareholders wealth. Shareholders wealth and value can be improved by
increasing the growth in revenue, increasing the operating efficiency, asset efficiency and fulfilling the expectation of the shareholders that is gaining
confidence about the company's future in the minds of analyst and the stakeholders of the company (Kerzner, 2014, p. 660).
In this case, this decision is mainly focusing to add more value to the company. When a company enters into a new venture, there are probabilities for
both success and failure (Rothman, 2009, p. 58). A detailed market research and an in depth analysis is required before making any investment decision
as this will affect the entire organization. In this
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Starbucks 's High Quality Coffee Essay
Company Situation
Starbucks roasts high–quality coffee beans to make espresso drinks and sells coffee products through multiple retail channels. The company has over
24,000 stores in 70 countries. Starbucks target market is affluent adults ages 18–40. This market segment makes up 49% of the company's sales. In
addition to targeting a specific market, the company employs a differentiation strategy. Along with the high–quality coffee, the company offers an
experience within their stores which justifies higher products. Some aspects of this "coffee experience" include free Wi–Fi, friendly baristas, fast
service, and comfortable seating. Also, the company relies on new product development as a strategic choice. This includes adding alcoholic
beverages and food to its coffee shop. All of this is done with the idea of making the higher priced product worth it for the consumer.
In their annual report, the company states that their objective is to "maintain Starbucks standing as one of the most recognized and respected brands in
the world." To achieve this objective, the company has strategically expanded by adding stores domestically and in developing markets. Through their
experience, the company aims to be stay respected by offering a diverse range of products and following Starbucks Global Responsibility Strategy,
which involves choosing suppliers that source coffee beans ethically and contributing positively to the communities that the company operates in.
Lastly, the
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Essay on Starbucks Marketing Plan
Marketing Plan Project Starbucks MKTG 3175 Gay Fortson Sharita Garmon Robin Hardy– Green
Table of Contents
Executive Summary.................................................................3
History and Background............................................................4
Marketing Strategy..................................................................5
The 4 P's..............................................................................6
Anoffs Growth Matrix..............................................................7
International Expansion ............................................................8
References...........................................................................9...show more content...
With innovative marketing and advertising campaigns in place and a new logo harkening back to the early days of Starbucks,18 the company continues
to strengthen their
Weaknesses
Recent Sales Slump – The Starbucks Corporation has fallen on hard times recently with net income falling $108.7 million in the first three months of
2011, down 28% from the same period of 2012. According to company press releases, the primary cause is the slumping U.S. economy and the
resulting slowed consumer spending and Starbucks higher prices
Opportunities
Product Innovation – Along with Starbucks' ventures into music and other areas, the coffee retailer will also begin offering new drinks in order to
acquire new customers and diversify their current lineup of beverages. Starbucks introduced two smoothies, both featuring banana under the names
"Mango Orange" and "Chocolate Banana
International Expansion – With the corporation hitting a sales slump partially due
Starbucks Marketing Case Study 6
to overexpansion in the US, the company has the opportunity to hit the international circuit for successes. Starbucks recently announced plans to open
more stores in Ireland, with many more to follow in 25other countries.
Threats
Legal Issues – The coffee retailer has come under fire in
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Starbucks Essay
3 Case studies
3.1 History of the development of "Starbucks Corporation"
Starbucks is an American coffee company and a coffeehouse chain with the same name. It was founded in 1971 as a roaster and retailer of whole bean
and ground coffee. In addition it was also a retailer of teas and spices and consisted of a single store in Seattle's Pike Place Market (Starbucks
Corporation) that was operated by three friends: Jerry Baldwin, Zev Siegl, and Gordon Bowker. The name of the company derives from the first mate
in Herman Melville's Moby Dick and credited to the co–founder Gordon Bowker who later tells about the early days of Starbucks in the interview to
"The Seattle Times" newspaper (Allison, 2008; see also Appendix 1).
In 1987 Howard Schultz,...show more content...
As highly qualified employees are vital to embody these intentions, Starbucks prefer to have all their stores under control. Hereat Howard Schultz
was refusing to grant foreign firms a franchise for a long time, and all shops were owned by the company. Exceptions comprised only institutions
where it was not possible, for example, hospitals, airports, universities etc. As of the September 27, 2015, 46.9% of Starbucks stores all over the
world are licensed stores (Starbucks, 2015). In the following case studies only company–owned stores will be
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Essay on Mini Case Starbucks
MINI CASE 4 I STARBUCKS: RE–CREATING ITS UNIQUENESS
1.How did Starbucks create its uniqueness in the first place? Starbucks create its uniqueness by offering premium coffee beans, thus creating an
amazing image. Every store is a unique place with a wide range of products and a special homely ambience, emphasized by relaxing music and
comfortable seating furniture. Other than that, customers can use the free wireless hotspot or just visit with friends. The high quality of the products
connected with a fair price attracts many coffee lovers. Starbucks also offer a wide range of products for example 30 different blends of coffee and first
supplier of beverages "to–go". The special flavor of the coffee beans in every Starbucks...show more content...
Organized to capture value : Starbucks have an effective organizational structure and coordinating systems to fully exploit the competitive potential of
its resources and capabilities.
So, Starbucks has gain and sustained competitive advantage.
3. Why and how did Starbucks lose its uniqueness? Starbucks lose its uniqueness when baristas used to grind beans throughout the day whenever a
new pot of coffee had to be brewed which was at least every eight minutes. Many baristas began to grind all of the day's coffee beans in the morning
and store the rest of the day. Baristas now use push–button machines to make espresso drinks. That stores no longer smell like coffee and that every
store looks cookie–cutter.
4.How is Starbucks attempting to re–create its uniqueness? Do you think it will be successful? Why or Why not? Starbucks attempting to re–create its
uniqueness by introduced many new products such as instant coffee. These new products undercut the integrity of the Starbucks brand for coffee
purists. They also challenged the baristas who had to wrestle with an ever–more–complicated menu of drinks. With over half of customers customizing
their drinks, baristas hired for their social skills and passion for coffee, no longer had time to dialogue with customers. The brand experience declined
as waiting times increased. Moreover, the price premium for a
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Essay On Starbucks
THE STORY OF HOWARD SHULTZ AS AN ENTREPRENEUR
When coffee is called one of the first brands that comes our minds is Starbucks. The reasons for this success are not just coincidence; contrary they
are the outcomes of a successful entrepreneur, Howard Schultz. Schultz was born on July 19, 1953 in New York, his family was poor and he was
doing sports at the high school so he excelled at sports and won an athletic scholarship for Northern Michigan University. Schultz worked as a
salesperson for Xerox Corporation after his graduation. He could start his own business at first but he decide to improve himself at working place.
He was knew that with some experience in working area will help him in the future. He was quickly promoted to a full sales representative. Then he
became a general manager for a coffee maker...show more content...
He has patience and stability so it brings him what he wants. Although the first founders present a conservative attitude, this not caused Howard
Schultz to give up. It is a crucial key to become an entrepreneur. So he joined Starbucks as the Director of Marketing a year later. When he was at a
business trip to Italy he realized that there was a coffee bar in every street. People were using these bars as meeting places or public squares. He
want to adapt this culture on Starbucks and it was his initiative idea as an entrepreneur but could not pursue the owners. He take risk although he does
not have money and did not give up. Then Shultz decided to leave the Starbucks and open his own coffee bar with the help of the ex–bosses and a
doctor client. In 1986 he open the first store, "Il Giornale''. Two years later he bought Starbucks Coffee Company for US$3.8 million and changed
the name of Il Giornale with the Starbucks. Thus the real story of Starbucks began so we will analyze how Starbucks Coffee Company become a
word leader as its moves in global business market accordingly Howard Shultz's success as an
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Essay on Starbucks' Business Strategies
Starbucks' Business Strategies
1. What are the key elements of Starbucks? strategy as of 2004?
The key elements of Starbuck?s strategy were as follows:
a. Grow the business by constantly adding more stores around the world: The Company has had tremendous success in opening stores around the
world. It has applied its global strategy effectively and has enjoyed increase in sales from global operations.
b. Store design, planning and construction are also part of the strategy. The company began to create its own in house architects and designers to
design Starbucks locations. Locations are designed for customers to meet, relax or simply enjoy a peaceful interlude in their day. Each location was
designed to signal...show more content...
The objectives set by Mr. Schultz were simply to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal the
company has implemented a strategy which focuses on rapid expansion of its retail operations, growth in specialty sales and other operations and
selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution
channels.
Mr. Schultz has successfully implemented this strategy and has had tremendous success in expansion in other countries. The recent expansion in Japan
has also been very successful for the company. So far the company?s strategy seems to be working fine and no major adjustments are needed.
3. What was Howard Schultz?s original strategic vision for Starbucks? Is his present strategic vision for Starbucks different from the one he had in the
1980s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution?
When Starbucks was a private company back in the 80s Mr. Schultz?s vision was for Starbucks to become a national company with values and guiding
principles that employees could be proud of. This is not very different from the strategic vision the company has in the present time. The significant
difference is the concentration of markets. In the beginning it was the national market that the statement was
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The Rise and Success of Starbucks Essay
The Rise and Success of Starbucks
Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With its
humble roots firmly planted in Seattle, Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the
go. The amazing success of Starbucks can be attributed, in part, to operational planning. Starbucks has become a well–known company for selling the
highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in
beverage retailing, not just coffee beans. Starbucks created a coffee for the coffee connoisseurs, and exhausted all...show more content...
All of these examples show the commitment of top executives to their people. However, the most astounding commitment comes from the hiring of
remarkable operational managers. This majority of front line managers are truly one of the Starbuck?s organizations strengths. Operational managers
are the individuals who shoulder the responsibility of making a profit. Fortified with the company mission statement these supervisors make use of
company programs by creating action plans as well as encouraging and instructing their team to employ them to meet operational and organizational
objectives. These supervisors, train, coach and provide direction to their staff in order to meet customer demands while maintaining renowned
customer service. A measure of the efficiency of these managers is Starbucks position in Forbes ?100 best companies to work for? for seven of the
last eight years. The company is a respected employer that values its workforce. The organization has strong ethical values and an
ethical mission statement as follows, ?Starbucks is committed to a role of environmental leadership in all facets of our business.? (Starbucks mission
statement)
Starbucks is a common spoken coffeehouse name; still Starbucks must keep in mind that to stay atop the coffeehouse market, they must realize their
business? weaknesses. One of Starbucks weaknesses is, they need to listen to the consumer?s feedback, and
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Starbucks Coffee Shop Essay example
Starbucks Coffee Shop
When you walk in a Starbucks coffee shop the amazing aroma of coffee beans being brewed creates a smell so wonderful you can almost taste
your favorite coffee or espresso drink; even before you have the drink in your hand. The sound of steaming milk and blenders full of Frapachinoes
echoes through the air. Five people in green aprons wearing black or white collared shirts working swiftly, to ensure the quickest best service as
possible. The two Baristas at the cash registers would call out the drinks to the two people at the bar. One employee doing odd jobs call expediting.
A tall, slender dark haired man wearing a black suit possibly Armoni or Gucci, carrying a briefcase approaches register one. A trendy mom
...show more
content...
"Fine thanks." I reply. "What may I get for you today?" I reply, "How about a grande soy moacha." She marks on the cup "S" in the milk spot and "M"
in the drink box. The she asks "If I would like a pastry today?" I reply "No thank you." Then she says that will be "$3.55" I give her the money and she
says, "Have nice day and your drink will be ready at the bar." My drink is then called out at the bar, I went to go get it and I was thanked by the Barista
working at the bar and once again told to, "have a nice day." I decided to sit down at this long window seat at a table an enjoy my moacha. I watch
as streams of people constantly came in. I see everything from people on their way to work, mothers with their kids on the way to school, and
people that appeared to have just been out jogging in their warm up suits. One woman carrying a toddler says to another woman with a stroller, says
"I always see you here," the other replies "I know it is scary this is my second time here today." There were several instances where similar interactions
took place wile I was observing.
Most mornings the line is going out the door. It made me wonder what it was that really put Starbucks over the top. I wanted to know more about the
behind the scenes aspects of what it takes to be a Starbucks. What really made it that much better then other coffee houses. For there to be thousands in
the United States and in eleven different
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Essay On Starbucks Case Study

  • 1. Essay on Starbucks Case Study Question 1 Overall, Starbucks' performance has been mixed over the past six months. On April 13, 2012, its stock price reached a high of $61.67 per share and closed at $57.37 per share. Since April, the price of Starbucks' stock fell on average in the following closing months of May and June before reaching a low of $43.16 in the opening days of August. The fall was correlated with the release of Starbucks' third quarter annual report, which showed a less–than–expected performance for that quarter; the earnings per share were $0.43 compared to a market expectation of $0.45 (Baertlein). Since then, the price of Starbucks' stock has gradually increased. Although market risk factors like decreased consumer spending may have impacted ...show more content... 4 Yahoo!Finance) n. Raw beta = 1.201 (p. 2 Bloomberg) o. Risk premium = 5.5% (given) p. Cost of debt = 2.82% (p. 2 Bloomberg) q. Effective tax rate = 38% (given) r. Under the linear decline model, the equity value per share is $55.59, while the current stock price is $51.07. Based on our evaluation, the current stock price is undervalued. Under the exponential decline model, the equity value per share is $47.63, while the current stock price is $51.07. Based on our evaluation, the current stock price is overvalued. Question 3 a. Current year EPSO = Earnings per share – basic b. Year 1 Consensus EPS Forecast (p. 3 Bloomberg) c. Year 2 Consensus EPS Forecast (p. 3 Bloomberg) e. Under the linear decline model, the final valuation of the equity per share is $52.70, while the current market price per share is $51.07. Based on our evaluations, the stock is undervalued. Under the exponential decline model, the final equity value per share is $45.10, while the current market price per share is $51.07. Based on our evaluation, the stock is overvalued. Question 4 The Free Cash Flow For The Firm (FCFF) approach based on the linear decline most accurately reflects the value of Starbucks. The capital structure of Starbucks has been fluctuating. For example, in 2007 and 2008, Starbucks' debt ratios were about .57 and .56 respectively; for those years, over 50% Starbucks' assets were provided via debt. However, in 2009, 2010, and 2011, Starbucks' debt
  • 2. Get more content on HelpWriting.net
  • 3. Case Study #1: Starbucks Essay Case Study 1: Starbucks 1. What are the barriers facing Starbucks as they try to "teach" people to change their consumption habits from tea and instant coffee? a. China is country with a population of about 1.3 billion people. It is considered a tea–drinking nation rather than a coffee–drinking nation. This is partly due to the benefits that tea is believed to offer, which include medicinal qualities that coffee does not have. As a result, Starbucks has the barrier of tradition in their way. Chinese people are set in their ways with drinking tea and it will be difficult to sway them towards drinking coffee. There is also the barrier of competition including the "fresh–ground" market including coffees from Hong Kong, Canada, the...show more content... All in all Starbucks must examine the new market and answer the needs of the culture involved to fully succeed. 3. What encompasses the Starbucks "experience" that so many companies try to emulate? a. We believe that Starbucks places a high importance on quality customer service and uniformity so that one gets the same experience at every Starbucks. Starbucks strives to create an atmosphere that makes one feel comfortable, warm and safe– a home away from home. They make the customer feel welcome the moment they step in the door. A few, the regulars, are lucky enough to have his/her drink ready by the time he/she gets to the cash register– true customer service! Uniformity and efficiency is a big part of the Starbucks experience. Their mission is to create the perfect cup of coffee every time at every location. With an endless amount of choices everyone is bound to find something to fit his/her taste, whether he/she is a coffee drinker or not. 4. Innovation analysis of Starbucks and coffee into the Chinese market: Diffusion DeterminantDiffusion InhibitorDiffusion Enhancement Strategies 1. Nature of groupCollectivistTarget innovators and ones who have shown to enjoy coffee 2. Type of decisionIndividual Target the individual with advertising 3. Marketing effortBroadMarket anywhere that you can, target the innovators 4. Felt needWeak/Moderate
  • 4. Get more content on HelpWriting.net
  • 5. Essay on Starbucks Strategic Plan Executive Summary Starbucks Corporation success in the coffee business has arguably been the most successful coffee chain in the past few decades. The company has been able to continue to attract customers even though they are not positioned as the lowest cost provider of coffee. Starbucks has been able to aggressively expand the business by attracting investors as well as selling their coffees for premium prices and increasing their profitability. The rapid growth ofStarbucks has become a testament to the success of the expansion strategy that was developed back in 1992 and 1993 when Starbucks developed a three year expansion strategy (Shah, Hawk, & Thompson, 2010). This strategy focused on areas that had the demographic targets...show more content... In 2013, Starbucks opened nearly twenty–two hundred new stores. As witnessed by the sharp increase in the number of new stores being opened in 2013 Starbucks has clearly committed to their global expansion plan and objective of being the most recognized and respected brand in the world (Starbucks Corporation, 2013). This expansion philosophy is now viewed as being responsible growth and maintaining shareholder value through the expansion process. Starbucks strategy has been to delivery not only great tasting consistent coffee but to provide a cool, cozy relaxing environment providing that "feel–good" experience. This concept has been well received with the young hip professional crowd and even those middle aged folks that have the disposable income to afford the cost of a specialty cup of coffee. Over the last two decades Starbucks has been able to not only attract the "yuppies" but also has been successful in drawing the professional and executive and elder people from all walks of life. Everyone appears to want to have the "Starbucks experience" even at the price of their coffee. Starbucks growth strategy is also supplemented by new product offerings in the specialty drink area, as well as several different product offerings at their various store locations. Since May of 2009, Starbucks has been on a recovery path from the down turn that they experience in the mid 2000's. As competitors like Dunkin Donuts Get more content on HelpWriting.net
  • 6. Starbucks Essay Yadira Celaya Starbucks Final Essay 5/30/13 Starbucks Final Essay The three major stakeholders for Starbucks are their suppliers, employees, and customers. The external stakeholders of Starbucks are the suppliers and customers, while employees are internal stakeholders. Starbucks Company follows valuable practices and good citizenship in order to motivate its stakeholders. The company is motivated to help create a better future for coffee, communities and the farmers. This is established based on a shared interest to endure the making of high quality coffee. Starbucks builds and maintains morale in its business to its stakeholders by using the content, process and reinforcement theories. The company uses Maslow's need of hierarchy...show more content... They expand the business competency by practicing the fair trade operatives. They also deliver clearness to the farmers level and if they cannot be there personally they will send in an intermediary to negotiate a price with the farmer. The major 21st century challenges Starbucks and other coffee sellers have faced are competitive advantage, diversity, globalization, information and technology. Starbucks has used competitive advantage to stay ahead of its rivals. This organization out performs its competitors by producing effective quality coffee to its customers and including diversity, "At Starbucks, we strive to create a culture that values and respect diversity and inclusion. We expect to be a leader in diversity and inclusion, from our partners in the field to our senior leadership teams," (Starbucks Corporation, 2013). They are also expanding with other distributions, however, globalization has helped to establish Starbucks as an international company and globalization is vital to successful companies. Starbucks has made any adjustments that are necessary in order to succeed outside of America, they have taken their time to understand the differences within other countries. Starbucks has also managed information technology by having their own website full of information about their company and their coffee. You can make purchases online and they also offer free Wi–Fi at their local shop locations. Overall Starbucks has become a very effective Get more content on HelpWriting.net
  • 7. Essay on Starbucks Company Overview Starbucks Company Overview Starbucks, a well–managed assertive company, has consistently achieved growth since its early beginnings. Starbucks is the largest retailer of specialty coffee drinks and coffee beans in the nation sold through company–owned retail outlets and supermarket chains (Starbucks Corporation, 2009). The Starbucks name has earned its place as an innovative organization that represents a sense of community and shared ideals among its customers, its employees, and the world at large and its brand is equivalent to quality. By combining its well–known name and brand with focused superior customer service, Starbucks is positioning itself in the market with enhancing both its product line and its marketing channels since it...show more content... By August of 1987, Howard Schultz bought Starbucks for $4 million dollars. On August 18, 1987, the Starbucks as we know it was born. By 1990, Starbucks had opened 84 stores. On June 26, 1992, Starbucks went public and was listed on the NASDAQ with a price of $21 a share. Starbucks for the next decade continued to expand its' stores domestically and internationally. Starbucks also continued to widen their menu selections by offering food and specialty drinks. By the end of 1999, Starbucks had opened 2,498 stores. By 2007, Starbucks opened 15, 756 stores. From 2000 to current year, Starbucks continues to be the leader in the coffee industry. Market Role of Government Regulations Government regulations has major implications in different aspects of Starbucks' business. First of all, being a publicly listed company, government regulations has major implications on financial reporting and accounting activities of the company. For example, Starbucks need to comply with strict government regulations such as Sarbanes Oxley Act of 2002 and other SEC/US GAAP related compliance issues pertaining to financial reporting and accounting policies. (Sutherland Asbill & Brennan LLP, April 2003, p. 1) Non adherence to such regulations can result in significant penalties and fines for Starbucks. Government regulations also play an important role in global business of Starbucks, such as import of raw materials like Coffee and international operations of the company. Changes in Get more content on HelpWriting.net
  • 8. Starbucks Advertising Essay Starbucks advertisement Starbucks is really well known and also believed to be the leading coffee company in the universe. Starbucks is the one of the successful examples to build a good reputation through social media. Starbucks heavily promotes ethical practices throughout the media to create a halo effect. So, Starbucks gains customer's trust. Starbucks has put different types of Sales Promotion across the country and other nations with hopes of motivating more customer to purchase, especially in times of economic hardships where people are less likely to buy. The coffee company uses all forms of different sales promotion. For instance, Starbucks offered 50% off Frappuccino from 3pm until 5pm on 6 May 2015 in Malaysia. This promotion is...show more content... The primary use for this encouragement is for preserving the woods. Founded on research, Americans drink 100 billion cups of chocolate per year. At least 14.4 billion are served in disposable paper cups. Most of their paper cups are un–recyclable due to the plastic lining inside the cup. Aims for Starbucks by 2015 are they launch 100% recyclable cup and their coffee must be 100% ethically sourced. The causes they promote good ethics are portraying a serious public image of the company and want to protect image as being a socially responsible governance and a good option for consumers. Other than that, Starbucks wants to increase focus on ethical and moral issues in business generally. In addition, Starbucks makes it a priority to always pay coffee farmers proper wages for the chocolate that they produce. They even travel as far as buying all the coffee that one specific farmer can bring forth to make a coffee unique and exclusive to Starbucks. Non only does Starbucks work with the coffee farmers that they are purchasing from, but they also play with the local governments to ensure fair treatments, and social conditions. They suffer with these governments frequently to ask for aid to be socially responsible. In return, Starbucks does their best to help them by building schools and education programs. According to the individualism theory Starbucks would be considered ethical because Get more content on HelpWriting.net
  • 9. Essay on Starbucks: Organizational Culture Starbucks: Organizational Culture When people think of the most popular coffee house in the country and world, they immediately think of Starbucks. That's because it's true, but what most people don't know is that Starbucks is also ranked #1 on the Most Admired Food Services Companies to work for (America's most admired companies 2007, 2007), and # 16 Best Companies to work for (Best companies to work for 2007, 2007). It also ranked # 2 Most Admired Companies to work for over all, # 6 for Best People management, # 7 for Best Social responsibility, and # 10 for Best Innovation (America's most admired companies 2007, 2007). These are incredible numbers, which is why I choose Starbuck's as the most culturally appealing company that I would...show more content... These values include respectful working environments, environmental awareness, humane treatment of workers, and benefits for workers. Starbuck's mission is to not only offer premium quality coffee and excellent customer service, but it is also devoted to providing quality service to its employees. Starbucks works hard to create an excellent work atmosphere, ensuring that employees treat one another with deference, and respect diversity. Starbucks also shows how much it cares about society by making over 30 million in charitable contributions and volunteering over 290,000 hours (Corporate social responsibility / fiscal 2006 annual report, 2007). There are thousands of people who work for this company as farmers and suppliers who are located all over the world. Starbucks makes certain to follow international child labor laws, provide humane and safe working conditions, and honors minimum wage requirements. Starbucks is also deeply focused on being environmentally vigilant. Starbucks practices energy and water conservation, uses renewable energy, and uses recyclable materials. Starbucks also provides excellent benefits. "The components may include competitive base pay, bonuses, comprehensive health coverage, income protection, vacation, stock options, a savings program, adoption benefits, tuition reimbursement and partner perks, including a discount on merchandise in our stores" (Corporate social responsibility / fiscal 2006 annual report , 2007, Abridged Report, Get more content on HelpWriting.net
  • 10. Reflective Essay On Starbucks Around 8 pm on March 11, 2016, my sister and I decided to grab a coffee from Starbucks. I believe that Starbucks is a perfect example of a location where diverse people consisting of different generations hang out, meet, transact, communicate and study. Starbucks is open for masses to stay in as long as they want while drinking a good cup of coffee. I was fortunate enough that during the time of my observation a lot was going on. With the learning I have grasped from our lessons, I was able to see various concepts that are under the topic Communication: An Introduction. The five fundamental characteristics were seen on the site. The first situation, I recognize is the exchange of meaningful symbols. The people used distinct ways to exchange symbols. An example of which is when...show more content... I could observe that people were working on documents; it may be for work or for school. In addition, there were people who were reading the daily newspaper. With that, I noticed that aspect of information was present. They use liable data to gain new knowledge for future purposes. On the other hand, entertainment was prominent in the area. A clique was laughing about a joke a member shared. This made their discussion livelier and buoyant. On the other hand, instruction was visible in the field. The students were studying study due to the fact that the coffee shop had excellent ambiance. They used instructional devices such as textbooks, handouts and computers to boost their intelligence. While one table consists of a student and a mentor. The mentor was sharing insights and explaining the study they were focusing on. In fact, manager and staff relationship could also be an example, wherein the manager advised his staff about the customer's orders. I only witnessed one case of persuasion, where I overheard a girl inviting her to visit a club after having their Get more content on HelpWriting.net
  • 11. Essay on STARBUCKS COFFEE I. Strategic Problem: How can Starbucks Coffee Corporation continue to provide exceptional employee benefits package while pursuing a globalization strategy? II. Analysis of the Problem: A. Company Background and History: 1. Founders. a. Starbucks began in 1971 when three scholars–English teacher Jerry Baldwin–history teacher Zev Siegel, and writer Gordon Bowker– opened a store called Starbucks Coffee, Tea and Spice in the touristy Pikes Place Market inSeattle. b. The inspiration and mentor for the Starbucks venture in Seattle was a Dutch immigrant named...show more content... e. Schultz left Starbucks left in 1985 to start his own company. f. In March 1987, Howard Schultz, president and CEO, took Il Giornale Coffee Company to form Starbucks Corporation. B. Overview of Retail Industry 1. Financial Situation and Performance. a. Starbucks goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest coffee and related products, and by providing superior customer service. b. Company–operated retail stores accounted for approximately 85% of net revenues during fiscal 2003. c. Specialty Operations accounted for approximately 15% of net revenues in fiscal 2003.
  • 12. d. Starbucks went public on June 26, 1992 at $17 per share, or a split adjusted price of $1.0625 for the company's four subsequent 2–for–1 stock splits (wwww.starbuckscoffee.com). e. Comparing Starbucks financial ratios to that of the Industry can give us a general perspective of Starbucks financial strength. This could also give some indication of stock price performance. Get more content on HelpWriting.net
  • 13. Essay on starbucks industry analysis Starbucks Industry Analysis The coffee and snack shop industry includes thousands of mom and pop shops to a small number of franchised businesses. The U.S. Census Bureau estimates that nearly half of this industry, 48.0%, of establishments are small business owners with nine or fewer employees. The top four players in the industry are Starbucks Corporation, Dunkin' Brands Inc., Krispy Kreme Doughnut Corporation and Einstein Noah Restaurant Group, which currently dominate 64.8% of the market. When it comes to the restaurant industry, many companies have seen their profits and financials in whole decrease. One segment of this industry, the coffee and snack shop industry, experienced the same. Since 2009 players in this sector have...show more content... Convenience food locations are plentiful and well–advertised, and it is because of this that they continue to compete within the coffee and snack shop industry. Healthy Eating The specialty coffee industry is modifying the products that it offers, as well as its services. With consumers demanding healthier eating options, it is up to the companies in this industry to decide which route they will go. Consumers are now more aware of the health issues that are associated with fatty foods and are going out of their way to avoid them. This includes spending the extra money on healthier alternatives. Many chains have already introduced their new healthy alternative, with more in the works as they look to expand their product lines. Major operators such as Starbucks, have already expanded their profits by providing a variety of menu options, including oatmeal and breakfast sandwiches. While major fast food chain McDonald's has increased their hand in the stake by expanding their premium coffees. Coffee Consumption Another force that may affect the industry in the next five years is that per capita coffee consumption is expected to decrease slowly in this year. This poses a potential threat in the fact that coffee shops and other establishments that serve coffee are a major portion of the industry revenue. Economic Forecast Industry analysts are expecting that in the five years to 2018 revenue will increase at an average Get more content on HelpWriting.net
  • 14. Starbucks The ideal requirements were also based on the maximum density of Starbuck shops located within the town centre area for the city of Chicago; a total of 48 places were designed within the town centre business region areas (Starbucks in Illinois/Chicagoland May 21, 2011). The technique for applying Coffee house distribution support concept to clients will be through in–store discounts, email advertising, on–line applications for smart–phone customers, television advertisements, paper ads as well as through Coffee house website and Facebook social networking network. Customers will be able to register their on–line information to perform and house details to locate the providing Coffee house shops near them. Majority of the growth decision revolves around the concept of maximizing shareholders wealth. Shareholders wealth and value can be improved by increasing the growth in revenue, increasing the operating efficiency, asset efficiency and fulfilling the expectation of the shareholders that is gaining confidence about the company's future in the minds of analyst and the stakeholders of the company (Kerzner, 2014, p. 660). In this case, this decision is mainly focusing to add more value to the company. When a company enters into a new venture, there are probabilities for both success and failure (Rothman, 2009, p. 58). A detailed market research and an in depth analysis is required before making any investment decision as this will affect the entire organization. In this Get more content on HelpWriting.net
  • 15. Starbucks 's High Quality Coffee Essay Company Situation Starbucks roasts high–quality coffee beans to make espresso drinks and sells coffee products through multiple retail channels. The company has over 24,000 stores in 70 countries. Starbucks target market is affluent adults ages 18–40. This market segment makes up 49% of the company's sales. In addition to targeting a specific market, the company employs a differentiation strategy. Along with the high–quality coffee, the company offers an experience within their stores which justifies higher products. Some aspects of this "coffee experience" include free Wi–Fi, friendly baristas, fast service, and comfortable seating. Also, the company relies on new product development as a strategic choice. This includes adding alcoholic beverages and food to its coffee shop. All of this is done with the idea of making the higher priced product worth it for the consumer. In their annual report, the company states that their objective is to "maintain Starbucks standing as one of the most recognized and respected brands in the world." To achieve this objective, the company has strategically expanded by adding stores domestically and in developing markets. Through their experience, the company aims to be stay respected by offering a diverse range of products and following Starbucks Global Responsibility Strategy, which involves choosing suppliers that source coffee beans ethically and contributing positively to the communities that the company operates in. Lastly, the Get more content on HelpWriting.net
  • 16. Essay on Starbucks Marketing Plan Marketing Plan Project Starbucks MKTG 3175 Gay Fortson Sharita Garmon Robin Hardy– Green Table of Contents Executive Summary.................................................................3 History and Background............................................................4 Marketing Strategy..................................................................5 The 4 P's..............................................................................6 Anoffs Growth Matrix..............................................................7 International Expansion ............................................................8 References...........................................................................9...show more content... With innovative marketing and advertising campaigns in place and a new logo harkening back to the early days of Starbucks,18 the company continues to strengthen their Weaknesses Recent Sales Slump – The Starbucks Corporation has fallen on hard times recently with net income falling $108.7 million in the first three months of 2011, down 28% from the same period of 2012. According to company press releases, the primary cause is the slumping U.S. economy and the resulting slowed consumer spending and Starbucks higher prices Opportunities Product Innovation – Along with Starbucks' ventures into music and other areas, the coffee retailer will also begin offering new drinks in order to acquire new customers and diversify their current lineup of beverages. Starbucks introduced two smoothies, both featuring banana under the names "Mango Orange" and "Chocolate Banana International Expansion – With the corporation hitting a sales slump partially due Starbucks Marketing Case Study 6 to overexpansion in the US, the company has the opportunity to hit the international circuit for successes. Starbucks recently announced plans to open
  • 17. more stores in Ireland, with many more to follow in 25other countries. Threats Legal Issues – The coffee retailer has come under fire in Get more content on HelpWriting.net
  • 18. Starbucks Essay 3 Case studies 3.1 History of the development of "Starbucks Corporation" Starbucks is an American coffee company and a coffeehouse chain with the same name. It was founded in 1971 as a roaster and retailer of whole bean and ground coffee. In addition it was also a retailer of teas and spices and consisted of a single store in Seattle's Pike Place Market (Starbucks Corporation) that was operated by three friends: Jerry Baldwin, Zev Siegl, and Gordon Bowker. The name of the company derives from the first mate in Herman Melville's Moby Dick and credited to the co–founder Gordon Bowker who later tells about the early days of Starbucks in the interview to "The Seattle Times" newspaper (Allison, 2008; see also Appendix 1). In 1987 Howard Schultz,...show more content... As highly qualified employees are vital to embody these intentions, Starbucks prefer to have all their stores under control. Hereat Howard Schultz was refusing to grant foreign firms a franchise for a long time, and all shops were owned by the company. Exceptions comprised only institutions where it was not possible, for example, hospitals, airports, universities etc. As of the September 27, 2015, 46.9% of Starbucks stores all over the world are licensed stores (Starbucks, 2015). In the following case studies only company–owned stores will be Get more content on HelpWriting.net
  • 19. Essay on Mini Case Starbucks MINI CASE 4 I STARBUCKS: RE–CREATING ITS UNIQUENESS 1.How did Starbucks create its uniqueness in the first place? Starbucks create its uniqueness by offering premium coffee beans, thus creating an amazing image. Every store is a unique place with a wide range of products and a special homely ambience, emphasized by relaxing music and comfortable seating furniture. Other than that, customers can use the free wireless hotspot or just visit with friends. The high quality of the products connected with a fair price attracts many coffee lovers. Starbucks also offer a wide range of products for example 30 different blends of coffee and first supplier of beverages "to–go". The special flavor of the coffee beans in every Starbucks...show more content... Organized to capture value : Starbucks have an effective organizational structure and coordinating systems to fully exploit the competitive potential of its resources and capabilities. So, Starbucks has gain and sustained competitive advantage. 3. Why and how did Starbucks lose its uniqueness? Starbucks lose its uniqueness when baristas used to grind beans throughout the day whenever a new pot of coffee had to be brewed which was at least every eight minutes. Many baristas began to grind all of the day's coffee beans in the morning and store the rest of the day. Baristas now use push–button machines to make espresso drinks. That stores no longer smell like coffee and that every store looks cookie–cutter. 4.How is Starbucks attempting to re–create its uniqueness? Do you think it will be successful? Why or Why not? Starbucks attempting to re–create its uniqueness by introduced many new products such as instant coffee. These new products undercut the integrity of the Starbucks brand for coffee purists. They also challenged the baristas who had to wrestle with an ever–more–complicated menu of drinks. With over half of customers customizing their drinks, baristas hired for their social skills and passion for coffee, no longer had time to dialogue with customers. The brand experience declined as waiting times increased. Moreover, the price premium for a Get more content on HelpWriting.net
  • 20. Essay On Starbucks THE STORY OF HOWARD SHULTZ AS AN ENTREPRENEUR When coffee is called one of the first brands that comes our minds is Starbucks. The reasons for this success are not just coincidence; contrary they are the outcomes of a successful entrepreneur, Howard Schultz. Schultz was born on July 19, 1953 in New York, his family was poor and he was doing sports at the high school so he excelled at sports and won an athletic scholarship for Northern Michigan University. Schultz worked as a salesperson for Xerox Corporation after his graduation. He could start his own business at first but he decide to improve himself at working place. He was knew that with some experience in working area will help him in the future. He was quickly promoted to a full sales representative. Then he became a general manager for a coffee maker...show more content... He has patience and stability so it brings him what he wants. Although the first founders present a conservative attitude, this not caused Howard Schultz to give up. It is a crucial key to become an entrepreneur. So he joined Starbucks as the Director of Marketing a year later. When he was at a business trip to Italy he realized that there was a coffee bar in every street. People were using these bars as meeting places or public squares. He want to adapt this culture on Starbucks and it was his initiative idea as an entrepreneur but could not pursue the owners. He take risk although he does not have money and did not give up. Then Shultz decided to leave the Starbucks and open his own coffee bar with the help of the ex–bosses and a doctor client. In 1986 he open the first store, "Il Giornale''. Two years later he bought Starbucks Coffee Company for US$3.8 million and changed the name of Il Giornale with the Starbucks. Thus the real story of Starbucks began so we will analyze how Starbucks Coffee Company become a word leader as its moves in global business market accordingly Howard Shultz's success as an Get more content on HelpWriting.net
  • 21. Essay on Starbucks' Business Strategies Starbucks' Business Strategies 1. What are the key elements of Starbucks? strategy as of 2004? The key elements of Starbuck?s strategy were as follows: a. Grow the business by constantly adding more stores around the world: The Company has had tremendous success in opening stores around the world. It has applied its global strategy effectively and has enjoyed increase in sales from global operations. b. Store design, planning and construction are also part of the strategy. The company began to create its own in house architects and designers to design Starbucks locations. Locations are designed for customers to meet, relax or simply enjoy a peaceful interlude in their day. Each location was designed to signal...show more content... The objectives set by Mr. Schultz were simply to establish Starbucks as the most recognized and respected brand in the world. To achieve this goal the company has implemented a strategy which focuses on rapid expansion of its retail operations, growth in specialty sales and other operations and selectively pursue opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels. Mr. Schultz has successfully implemented this strategy and has had tremendous success in expansion in other countries. The recent expansion in Japan has also been very successful for the company. So far the company?s strategy seems to be working fine and no major adjustments are needed. 3. What was Howard Schultz?s original strategic vision for Starbucks? Is his present strategic vision for Starbucks different from the one he had in the 1980s? How many times has his strategic vision changed? Is his present strategic vision likely to undergo further evolution? When Starbucks was a private company back in the 80s Mr. Schultz?s vision was for Starbucks to become a national company with values and guiding principles that employees could be proud of. This is not very different from the strategic vision the company has in the present time. The significant difference is the concentration of markets. In the beginning it was the national market that the statement was Get more content on HelpWriting.net
  • 22. The Rise and Success of Starbucks Essay The Rise and Success of Starbucks Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With its humble roots firmly planted in Seattle, Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to operational planning. Starbucks has become a well–known company for selling the highest quality coffee beans and best tasting coffee products. It was one of the first companies to realize that the real money to be made was in beverage retailing, not just coffee beans. Starbucks created a coffee for the coffee connoisseurs, and exhausted all...show more content... All of these examples show the commitment of top executives to their people. However, the most astounding commitment comes from the hiring of remarkable operational managers. This majority of front line managers are truly one of the Starbuck?s organizations strengths. Operational managers are the individuals who shoulder the responsibility of making a profit. Fortified with the company mission statement these supervisors make use of company programs by creating action plans as well as encouraging and instructing their team to employ them to meet operational and organizational objectives. These supervisors, train, coach and provide direction to their staff in order to meet customer demands while maintaining renowned customer service. A measure of the efficiency of these managers is Starbucks position in Forbes ?100 best companies to work for? for seven of the last eight years. The company is a respected employer that values its workforce. The organization has strong ethical values and an ethical mission statement as follows, ?Starbucks is committed to a role of environmental leadership in all facets of our business.? (Starbucks mission statement) Starbucks is a common spoken coffeehouse name; still Starbucks must keep in mind that to stay atop the coffeehouse market, they must realize their business? weaknesses. One of Starbucks weaknesses is, they need to listen to the consumer?s feedback, and Get more content on HelpWriting.net
  • 23. Starbucks Coffee Shop Essay example Starbucks Coffee Shop When you walk in a Starbucks coffee shop the amazing aroma of coffee beans being brewed creates a smell so wonderful you can almost taste your favorite coffee or espresso drink; even before you have the drink in your hand. The sound of steaming milk and blenders full of Frapachinoes echoes through the air. Five people in green aprons wearing black or white collared shirts working swiftly, to ensure the quickest best service as possible. The two Baristas at the cash registers would call out the drinks to the two people at the bar. One employee doing odd jobs call expediting. A tall, slender dark haired man wearing a black suit possibly Armoni or Gucci, carrying a briefcase approaches register one. A trendy mom ...show more content... "Fine thanks." I reply. "What may I get for you today?" I reply, "How about a grande soy moacha." She marks on the cup "S" in the milk spot and "M" in the drink box. The she asks "If I would like a pastry today?" I reply "No thank you." Then she says that will be "$3.55" I give her the money and she says, "Have nice day and your drink will be ready at the bar." My drink is then called out at the bar, I went to go get it and I was thanked by the Barista working at the bar and once again told to, "have a nice day." I decided to sit down at this long window seat at a table an enjoy my moacha. I watch as streams of people constantly came in. I see everything from people on their way to work, mothers with their kids on the way to school, and people that appeared to have just been out jogging in their warm up suits. One woman carrying a toddler says to another woman with a stroller, says "I always see you here," the other replies "I know it is scary this is my second time here today." There were several instances where similar interactions took place wile I was observing. Most mornings the line is going out the door. It made me wonder what it was that really put Starbucks over the top. I wanted to know more about the behind the scenes aspects of what it takes to be a Starbucks. What really made it that much better then other coffee houses. For there to be thousands in the United States and in eleven different Get more content on HelpWriting.net