Jerry Baldwin, Zev Siegl, and Gordon Bowker founded Starbucks in 1971. In the 1980s, Howard Schultz joined Starbucks and was inspired by Italian coffee bars. He proposed the idea to Starbucks but was rejected. In 1987, he bought Starbucks and transformed it into a global coffee brand focused on customer experience. Starbucks has grown to over 17,000 stores in 50 countries through aggressive expansion. It faces competition from other coffee chains and must balance global growth while maintaining quality and service.

1. STARBUCKsSHUBHADIP BISWASPGDM10-12IILM-GSM

2. HISTORYJerry Baldwin, Zev Siegl, and Gordon Bowker--FOUNDERS OF STARBUCKS-1971IT USED 2 BE A RETAILERHOWARD SCHULTZ STARTED HIS CAREER AS ASALESMAN IN SWEDISH KITCHENWARE1982—HE BEGAN HIS JOURNEY WITH STARBUCK1983-ON A BUSINESS TRIP TO MILAN—HE SAW AN EXPRESSO BAR WITH DIFFERENT CONCEPT

3. HISTORYHE LOVED IT----IT WAS A WARM COMMUNITY EXPERIENCEHE PROPOSED THE IDEA ------BOARD OF DIRECTORS REJECTED ITHE LEFT STARBUCKS & OPENED HIS OWN COFFEE BAR COMPANY—II GIORNALLE1987—HOWARD BOUGHT STARBULKSFROM THAT TIME TO NOW ON STARBULKS IS MOST POPULAR COFFEE BRAND WORLDWIDE—FOR ITS FAMOUS FRESH BREWED COFFEE

4. COFFEE INDUSTRY ANALYSISBASIC COFFEESPECIALTY COFFEE---HIGHER QUALITY COFFEEGROWING IN 7% ANNUAL GROWTH RATE

5. COFFEE INDUSTRY ANALYSISCOFFEE SHOPS MAKE UP THE FASTEST GROWING PART OF THE RESTAURANT BUSINESS, CHECKING IN WITH A 7% ANNUAL GROWTH RATE!WORLD COFFEE PRODUCTION IS ESTIMATED AT 110 - 120 MILLION BAGS PER YEAR14 BILLION ESPRESSO COFFEES ARE CONSUMED EACH YEAR IN ITALY, REACHING OVER 200,000 COFFEE BARS, AND STILL GROWINGAMERICANS CONSUME 400 MILLION CUPS OF COFFEE PER DAY, OR EQUIVALENT TO 146,000,000,000 (146 BILLION) CUPS OF COFFEE PER YEAR; MAKING THE UNITED STATES THE LEADING CONSUMER OF COFFEE IN THE WORLD.

6. COFFEE INDUSTRY ANALYSISTHE NATIONAL COFFEE ASSOCIATION ESTIMATES THAT THE US COFFEE MARKET WILL REACH $29 BILLION IN 2011STARBUCKS ALREADY HAS A PRESENCE IN CHINA, BUT THE INDIAN MARKET REMAINS LARGELY UNTAPPED. RECENTLY, STARBUCKS ENTERED INTO A PARTNERSHIP WITH TATA COFFEE ,THE NATION'S BIGGEST COFFEE PRODUCER TO HELP TAP THE COUNTRY WHERE COFFEE CONSUMPTION HAS INCREASED BY 89% IN THE PAST 13 YEARS.CURRENTLY ONLY 22% OF URBAN YOUTH GO TO CAFES, AND ACCORDING TO CAFE COFFEE DAY EXECUTIVES, THE INDIAN MARKET HAS THE POTENTIAL TO HOUSE UP TO 5,400 CAFES. CURRENTLY LESS THAN ONE-THIRD OF THOSE CAFES EXIST..

7. CURRENT SCENARIOSTARBUCKS IS THE LARGEST COFFEEHOUSE COMPANY IN THE WORLD, WITH 17,009 STORES IN 50 COUNTRIES, INCLUDING OVER 11,000 IN THE UNITED STATES, OVER 1000 IN CANADA, AND OVER 700 IN THE UK.STARBUCKS SELLS DRIP BREWED COFFEE, ESPRESSO-BASED HOT DRINKS, OTHER HOT AND COLD DRINKS, COFFEE BEANS, SALADS, HOT AND COLD SANDWICHES AND PANINI, PASTRIES, SNACKS, AND ITEMS SUCH AS MUGS AND TUMBLERS.SBUX.O$36.72-0.14-0.38%

8. CURRENT SCENARIOTHROUGH THE STARBUCKS ENTERTAINMENT DIVISION AND HEAR MUSIC BRAND, THE COMPANY ALSO MARKETS BOOKS, MUSIC AND FILM.STARBUCKS POSTED EARNINGS OF 399.3 MILLION OR $0.37 EPS, UP 86% COMPARED TO $199.4 MILLION FROM SAME QUARTER LAST YEAR. THIS FIGURE BEAT ANALYST ESTIMATES OF $0.32 EPS.[SALES ALSO ROSE 17% TO 2.8 BILLION AS COMPARABLE STORE SALES ADDED 8% IN DOMESTIC MARKETS.

9. REVENUE GROWTH OF STARBUCK

10. PESTEL ANALYSISPOLITICAL-HIGH TARIFF AFFECTS STARBUCKS PRODUCTION,ABILITY TO SOURCING BEST COFFEE BEANSECONOMICAL-1.HIGHER EXCHANGE RATE---MOST OF SUPPLIERS OF STARBUCKS ARE EXTERNAL---RESULT=INCURRING HIGHER COST--COFFE MAKING IS BEING EXPENSIVE WAYOUT---EXTRA COST TO CONSUMER??OR MAKING LESS PROFIT??

11. PESTEL ANALYSIS2.INCOME DISTRIBUTION OF CONSUMER—AFTER THE ECONOMIC CRISIS,2007 UNEMPLOYMENT FIGURES ROSE.PEOPLE WHO WERE ABLE TO CONSUME STARBUCKS’ EXPENSIVE SPECIALTY COFFEE NOW SAW IT AS A LUXURY IN SOME LOCATION.RESULT=SUDDEN DROP IN SALES VOLUME,2009

12. PESTEL ANALYSISSOCIAL ISSUE-1.CHANGING TASTE—USA IS CONSUMING MORE SPECIALTY COFFEE—IMPORT OF 1.3 BILLION IN 2010 INDIA ,CHINA---PEOPLE PREFER TEA. SO DIFFICULTY IN IMPLEMENTATION OF STRATEGY-AMERICANISATION IN DEVELOPING COUNTRIES.2.HEALTH CONSCIOUSNESS-NEED TO INTRODUCE NEW HEALTHY ALTERNATIVESNORTH AMERICANS ARE REPLACING ALCHOHOL WITH COFFEE3.COFFEE BARS—A PLACE FOR MEETING,A PLACE OF RECREATION

13. PESTEL ANALYSISTECHONOLOGY—STARBUCKS FOR PROMOTING BAND GLOBALLY—USING SOCIAL NETWORKING SITESIMPLEMENTED NEW PHONE PAYMENT SYSTEMSTARBUCKS CARD—ONLINE PAYMENT—IT ALSO HELPS TO INCREASE CUSTOMER LOYALITY

14. PESTEL ANALYSISENVIRONMENTAL-COFFEE HARVES IS DEPENDENT ON WEATHER CONDITIONS,HEALTH OF COFFEE TREES,HARVESTING PRACTICES,DISEASE AND INFECTION CAUSED BY INSECTS

15. OPPORTUNITIES AND THREAT--OPPORTUNITIES---ENTRY INTO NEW MARKETSGROWTH IN COFFEE MARKETTHREATS—COMPETITION WITH MCDONALD, CARIBOU COFFEE AND PEET'S COFFEE IN THE BROADER MARKET FOR SPECIALTY COFFEE. THEY ARE SELLING GOOD COFFEE FOR BETTER VALUEPREVIOUSLY-SECOND CUP---GROWTH OF SECOND CUP WAS A HEADACHE.

16. INTERNAL ANALYSISSTRENGTH AND WEAKNESS--STRENGHTH—1.BRAND IMAGE2.STRATEGY TO CAPTURE KEY LOCATIONSAND OPENING STORES3.ROASTING TECHNOLOGY4.VALUED AND MOTIVATED PARTNERS[EMPLYEES]

17. INTERNAL ANALYSISSTRENGTH AND WEAKNESS--WEAKNESS—1.AGGRESSIVE EXPANSION WITHOUT PROPER INFRASTRUCTURE– IS STARBUCKS THERE??ANS—NORESULT=PUT A STARBUCKS THERE.QUESTION ARISES-----QUALITY VS VOLUME2.STARBUCKS HAS NOT FOCUSED ON ITS PRODUCT DIFFERENTIATION OBJECTIVES3.PROBLEM IN DISTRIBUTION CHANNEL-STARBUCKS HAS CHARGED THAT KRAFT'S ALLEGED NEGLECT AND MISMANAGEMENT OF THE BUSINESS -- WHICH BRINGS IN ABOUT $500 MILLION IN ANNUAL SALES.THE WORLD'S BIGGEST COFFEE CHAIN WANTS TO END THE PARTNERSHIP ON MARCH 1 AND REPLACE KRAFT WITH PRIVATELY HELD ACOSTA INC.

18. largest publicly traded food service competitors-----fy 2009

19. COMPETENCIES OF STARBUCKS--ROASTING TECHNOLOGYVALVE TECHNOLOGYVALUE AND MOTIVATED PARTNERSREAL ESTATE APPROACHBAND IMAGEQUALITYEFFICIENT SUPPLY CHAIN SYSTEM

20. CORE COMPETENCIESROASTING TECHNOLOGYBRAND IMAGE

21. Marketing strategyTHE GLOBAL ECONOMY CONTINUES ITS RECOVERY, STARBUCKS IS PLANNING TO OPEN AN AVERAGE OF MORE THAN ONE STORE EACH DAY.ACQUISITION- APRIL 2003, STARBUCKS COMPLETED THE PURCHASE OF SEATTLE'S BEST COFFEE AND TORREFAZIONE ITALIA FROM AFC ENTERPRISES1998-tazo tea company ; 1999-hear music;2008-cloverPARTNERSHIP-UNITED AIRLINESNORDSTORMBARNES AND NOBLE BOOK STORE

22. Marketing strategyPEPSICOPRICECOSTCORED HOOK BREWERIESDREYER’S ICE CREAMARAMARKAPPLETATA COFFEEAcosta Inc

23. STARBUCK STRATEGY

24. RESULT OF SWOT ANALYSIS-- 1.STARBUCKS AGGRESSIVE GROWTH STRATEGY HAS MADE IT DIFFICULT TO DELIVER CONSISTENTLY HIGH QUALITY PRODUCTS AND SUPERIOR CUSTOMER SERVICE WORLDWIDE. 2.STARBUCKS NEEDS TO REFOCUS ON THE PRODUCT DIFFERENTIATION STRATEGY RATHER THAN EXPANDING. 3.MARKET PENETRATION WILL NOT BE A PROBLEM IF STARBUCKS CREATES PROPER INFRASTRACTURE GLOBALLY.