All data from public. Just for acedmic propose

2. Company background
Commercial and Economic Model
4 Strategy Analysis
Business Development in France
Conclusion
Agenda

3. 1. Company Background
Starbuck 7s (McKinsey)

4. 1. Company Background
Starbuck 7s – Hard Elements
• Increase revenues through effectively
positioning Starbucks stores as 3rd place
• Tactics: product quality + customer services
Structure
• Flat management through de-layering : 1 store
manager + shift supervisors + 16 baristas
• Functional Structure
• Employees as partners: brand equity extend
through Ingesting in employees
• Rotation system of duties to reduce
workforce conflicts + increase job interesting
• Training
• Roasting coffee : deliver consistent product
quality
• Purchasing coffee: economies of scales
Strategy
System

5. 1. Company Background
Starbuck 7s – Organizational charts

6. 1. Company Background
Starbuck 7s – Soft Elements
Style
• Change from Laissez-faire to inspirational
management
• Motivate workforce
• Respect customers and each other
• Ethnically and Caring style
• Capable and promising candidates
• Customer Service: creation of friendly and
relationship with customers
• Lower employee turnover: generous benefit
packages, unique and flexible working
environments
• Flexible work environment: apparently flexible
work environment
• Strong vision:
Staff

7. 1. Company Background
Starbuck 7s – Soft Elements
Skills
• Skillful workforce achieve high level
customers satisfaction: 24 hours-
training, star skills, coffee master
program, servant leadership
workmanship, career power, career
power for coaches workmanship
• Coffee experience: Knowledge of coffee
in supply chain management and
quality controlling. Starbucks is able to
handle each functions internally

8. 1. Company Background
Starbuck 7s – Soft Elements
Share
value
• Leverage the “Starbucks Experience”: -
coffee, friendly staff, interesting music
and comfortable meeting place (3rd
Place)
• Environmental Mission “Starbucks is
committed to a role of environmental
leadership in all facets of our business”
• Mission Statement “Establish
Starbucks as the premier purveyor of
the finest coffee in the world while
maintaining our uncompromising
principles while we grow”

9. 1. Starbucks SWTO
STRENGTH WEAKNESS
• Brand leader in the coffee market
• Good Financial condition
• Clear vision – Environment concern
• Product diversification
• Product is the last socially accepted
addiction
• High brand equity
• High Brand awareness
• Customer service is excellent
• Customer base loyalty
• Approx 13,000 employees; Valued
and motivated
• Good work environment
• Convenient locations
• 16,635 stores worldwide,
• Company operated retail stores and
licensees (no franchises)
• Operating in 40 countries worldwide.
• Good relationships with suppliers
• Size
• High operating cost
• Lack of internal focus (too much
focus on expansion)
• Increasing number of competitors
• Self-cannibalization
• Closed 900 stores since 2008
• less control over stores outside U.S.
• Product pricing (expensive
compared to competitors)
• Protest against the company on
different issues

10. 1. Starbucks SWTO
OPPORTUNITIES THREATS
• Emerging international
markets
• Product diversification
• Co-branding with other
food manufactures
• Whole bean sales in
supermarkets
• New distribution channels
(delivery)
• Brand extension
• New products (Via)
• Economic recession impacts sales
• Competition (restaurants, street carts,
supermarkets,
• other coffee shops, other caffeine based
products)
• market saturation
• Coffee price volatility in developing countries
• Negative publicity from poorly treated farmers
in supplying countries
• Consumer trends toward more healthy ways
Fragile state of worldwide production of
specialty coffees
• Alienation of younger, domestic market
segments
• Corporate behemoth image
• Cultural and Political issues in foreign countries
• Labor Unions issues
• ·Variation in coffee prices in developing
countries

11. 1. Starbucks Company Analysis
Porter 5 Forces
• Other beverages apart from coffee &tea e.g. soda,
water
• All energy drinks & pills: red-bull
• Any other quick-grab foods apart from pastries,
muffins
• Lower-end or less luxurious places e.g. tea house
• Low entry barrier
• Current outgoing threats of new entrants
like Mcdonald’s
• Less bargaining
power in the
past
• New entrants
and competitors
give buyer
slightly more
bargaining
power
• Beans suppliers:
70% from fair trade;
30% from normal
trade; own
distribution
network
• Package supplier:
Starbucks has more
bargaining
• Coffee machines
Supplier

12. 1. Brand Identity Prism
Inspiration of Starbuck

13. 1. Brand Positioning
Positioning Objective& Target
• Brand Image : an innovative industry leader that produces
HIGH QUALITY coffee
• Image based on Product vs Brand on Experience (3rd
place - the place between home and work where people
could gather, relax and interact with one another)
• Target : middle to high incomes, who had a desire to
purchase premium products. 20-45 years old women in
USA; Tribes in EEU

14. 1. Brand Positioning
Starbuck