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STARBUCKS - STRATEGIC MANAGEMENT

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All aspect of strategic management of Stabucks.
If you would like to download these slides, send me via: nguyenpuyen91@gmail.com with your purpose of download.

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STARBUCKS - STRATEGIC MANAGEMENT

  1. 1. INSTRUCTOR: Min Carter, Ph.D. GROUP MEMBERS: Nguyen Binh Ly Phuong Quach Thanh Nguyen Uyen Le Anh
  2. 2. Our Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
  3. 3. TV ADVERTISING CAMPAIN
  4. 4. Issues: Taxation Policy Trade regulations Governmental Stability Unemployment Policy Laws … Example: Hong Kong, Thailand, Africa… 1. Political issues
  5. 5. 2. Economical issues Inflation rate - 10% Growth in spending power – Average Income Rate of people in a pensionable age Boom
  6. 6. 3. SOCIAL ISSUES Age distribution Education levels Income level Consumerism Population growth Life expectancies Social and cultural changes affecting consumers’ buying habits/trends Expectation of society from the business
  7. 7. 4. TECHNOLOGICAL Technology has been played a vital role in Starbucks  Example:  Starbucks card
  8. 8. Nothing is more important than espresso machines designed our custom. We have designed special types of bottles.
  9. 9. 5. Environmental issues  Recycling: Recycling in Stores, Reusable cups, Greener Cups. Composting of coffee ground.  Energy: reduce energy consumption by 25% by 2010. Purchase renewable energy equivalent to 50% of the electricity used by 2010  Water: continue to include water-saving technology in our equipment specifications and going to reduce water consumption by 25% by 2015
  10. 10. Environmental issues (2)  Green Building: create a system to certify retail stores and store prototypes. Beginning in December 2010, build all new, company-owned stores to achieve LEED® certification  Climate Change: implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation, and collaboration and advocacy. ensure a long-term supply of high-quality coffee through responsible coffee purchasing practices and by investing in farmers and their communities. Source: Starbucks USA Homepage
  11. 11.  Employment law: working time, age, minimum wage rate, etc.  Health and safety regulations - Ex: Starbucks spend more on health insurance — $300 million surmount its coffee bill  Consumer protection: - Ex: Starbucks pay $225.000 to settle Consumer Protection case for gift card violations. (Santa Rosa, CA , 2009) - Ex: Stored-valued card: this is a prepaid card offer by Starbucks. 6. Legal issues
  12. 12. NAME AND LOGO OF STARBUCKS GET INSPIRATION FROM: CARTOON NOVEL COMIC NOTHING
  13. 13. NOVEL
  14. 14. Porter’s Five Forces Competitive Analysis
  15. 15. Porter’s five forces competitive analysis •Suppliers: Moderate  Starbucks has various options when choosing their supplier.  Starbucks decided to change its suppliers because of the increasing of price.  Disaster or issues associated with coffee producers being treated unfairly by multinational companies
  16. 16. •Buyers power: High  Starbucks has loyal customers that willing to come to buy.  Starbucks is not the only one choice of the customers.  Starbucks customers possess large amount of bargaining power
  17. 17. •New entrants: Moderate The market is highly saturated and require substantial amount of financial resources. Little product differentiation.
  18. 18. •Rivalry: High  Rivalry among existing competitors is high.  Many people started to look for more healthy and fresh juice instead of coffee.  The competitors don’t have much different from their product.
  19. 19. •Substitutes: High There are many kind of substitutes products, such as tea, soft drinks, juice, etc.
  20. 20. VALUE CHAIN ANALYSIS
  21. 21. PRIMARY ACTIVITIES • Coffee beans producers mainly in African • Organising the supply chain management Selling its products through its stores without any intermediates • Direct Operations • License • Word-of-mouth • Sampling Of New Products INBOUND LOGISTICS 1 OPERATIONS 2 OUTBOND LOGISTIC 3 MARKETING & SALES 4 SERVICE 5 Service on stores
  22. 22. SUPPOR T Procurement coffee beans and raw food items, as well as fixed assets such as buildings, machinery etc. Firm Infrastructuremanagement, planning, finance, accounting, legal support and government relations HRM • Most valuable resource • A wide range of training and development programs Technology cost-saving purposes
  23. 23. STORY OF TABLES
  24. 24. Strengths Weaknesses Opportunities Threats
  25. 25. Strengths Weaknesses - High quality - Strong brand name - Starbucks experience - Largest coffeehouse chain in the world - High market share and market growth -High price - Business profits are highly dependent on coffee product - Too focus on US domestic market. Opportunities Threats -Increase product offerings -To extend supplier network. - Expansion to emerging economies - Rising prices of coffee beans and dairy products - Frequent changes in the market trends - Numbers of competitors are increasing - Huge resistance in international countries over cultural and political issues SWOT ANALYSIS
  26. 26. THERE ARE ____ MAIN THEME(S) TO DECORATED IN STORES ? 1 2 3 4
  27. 27. ARTISAN MODERNHERITAGE

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