Starbucks has grown from a single coffee shop in 1971 to over 21,000 stores globally. The case study analyzes Starbucks' strategy and performance. It finds that Starbucks has strong brand image and market share but also faces threats from increasing competition and rising costs. The recommendation is for Starbucks to reduce prices through cheaper coffee beans and special promotions to boost sales while pursuing a focus-based strategy with advertising on the internet and events. Financial analysis shows growing earnings per share and operating income from 2007-2010, with good liquidity and profitability ratios, though activity ratios indicate slowing business activities.
Starbucks has evolved from a mere seller of coffee products to a full-fledged chain “restaurant”, offering not only coffee products but also other beverages, foods, and merchandise.
Starbucks is still a global leader in the coffee shop chain business
Introduced an online app making it more convenient for customers to locate stores and place orders
Starbucks slogan of “Uniquely Starbucks” continues to play a huge role in company’s success
Starbucks has evolved from a mere seller of coffee products to a full-fledged chain “restaurant”, offering not only coffee products but also other beverages, foods, and merchandise.
Starbucks is still a global leader in the coffee shop chain business
Introduced an online app making it more convenient for customers to locate stores and place orders
Starbucks slogan of “Uniquely Starbucks” continues to play a huge role in company’s success
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.
Starbucks: A Story of Growth - case study presentation for EBS/DBSBrandon J. Murray, PMP
For entry into the EBS European Business School / DBS Durham University Business School - dual Executive MBA programme, I was asked to analyze a case study from Kellogg School of Management at Northwestern University. I then had to write a handful of essays and give a 1-hour presentation consisting of 30 min of briefing and 30 min of Q/A from the EBS faculty audience.
Starbucks Corporation is known world-wide for their specialty coffee innovation and creative business design. Over time Starbucks has built a business around a relaxing, somewhat romantic atmosphere that brings to the customer a European feel and thus provides a strong user experience for its customers. In Starbucks’ earliest days, coffee consumption in the United States (US) was considered nothing special. Most US coffee offered a similar taste and wasn’t offered in a special “European” environment. With this absence of uniqueness, convenience was the dominant criteria used by US consumers to choose their coffee.
Enter Starbucks.
The first Starbucks opened in Seattle, Washington, on March 30, 1971,
By three partners who met while they were students at the University of San Francisco
English teacher Jerry Baldwin
History teacher Zev Siegl, and
Writer Gordon Bowker
The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans.
OPERATION MANAGEMENT REPORT: A CASE-STUDY ON THE KEY STRATEGIC AND OPERATIONA...Maxie Tran
This report focuses on analyzing the key strategic and business operation issues of a Starbucks coffee shop on 91 Clarence high street in Kingston town (Kingston Upon Thames, London, UK). The report identifies the business context and main operational aspects of this Starbucks shop which will be shown briefly in the Introduction part.
Methods of analysis include the secondary-data, primary-data (qualitative and quantitative research), relevant theories and relative information from books, online databases, as also student’s works and so on.
The report figures out the problems of this Starbucks shop, such as the atmosphere and layout inside the store, as also some customer services. However, those issues depend on many different cases which cannot meet a specific solution to improve themselves. In addition, the general feedback of customers indicates that although the problems exist, these issues are not big impacts.
Recommendation for the business of this Starbucks shop is to keep managing their current operating system and extend their competitive advantage, based on the ideal location (order-winner), to target the potential segment customers as non-coffee drinkers.
This report might not avoid the shortcomings and limitations itself. For instance, a lack of experience in doing the actual surveys which led to incomplete data and information; some results are based on past performance or general context which can be subjective.
This is a competitive matrix prepared for Starbucks Corporation. A case study under the doctorate program of PLM. The competitors analyzed were McDonald's and Dunkin Donuts
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.
Starbucks: A Story of Growth - case study presentation for EBS/DBSBrandon J. Murray, PMP
For entry into the EBS European Business School / DBS Durham University Business School - dual Executive MBA programme, I was asked to analyze a case study from Kellogg School of Management at Northwestern University. I then had to write a handful of essays and give a 1-hour presentation consisting of 30 min of briefing and 30 min of Q/A from the EBS faculty audience.
Starbucks Corporation is known world-wide for their specialty coffee innovation and creative business design. Over time Starbucks has built a business around a relaxing, somewhat romantic atmosphere that brings to the customer a European feel and thus provides a strong user experience for its customers. In Starbucks’ earliest days, coffee consumption in the United States (US) was considered nothing special. Most US coffee offered a similar taste and wasn’t offered in a special “European” environment. With this absence of uniqueness, convenience was the dominant criteria used by US consumers to choose their coffee.
Enter Starbucks.
The first Starbucks opened in Seattle, Washington, on March 30, 1971,
By three partners who met while they were students at the University of San Francisco
English teacher Jerry Baldwin
History teacher Zev Siegl, and
Writer Gordon Bowker
The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans.
OPERATION MANAGEMENT REPORT: A CASE-STUDY ON THE KEY STRATEGIC AND OPERATIONA...Maxie Tran
This report focuses on analyzing the key strategic and business operation issues of a Starbucks coffee shop on 91 Clarence high street in Kingston town (Kingston Upon Thames, London, UK). The report identifies the business context and main operational aspects of this Starbucks shop which will be shown briefly in the Introduction part.
Methods of analysis include the secondary-data, primary-data (qualitative and quantitative research), relevant theories and relative information from books, online databases, as also student’s works and so on.
The report figures out the problems of this Starbucks shop, such as the atmosphere and layout inside the store, as also some customer services. However, those issues depend on many different cases which cannot meet a specific solution to improve themselves. In addition, the general feedback of customers indicates that although the problems exist, these issues are not big impacts.
Recommendation for the business of this Starbucks shop is to keep managing their current operating system and extend their competitive advantage, based on the ideal location (order-winner), to target the potential segment customers as non-coffee drinkers.
This report might not avoid the shortcomings and limitations itself. For instance, a lack of experience in doing the actual surveys which led to incomplete data and information; some results are based on past performance or general context which can be subjective.
This is a competitive matrix prepared for Starbucks Corporation. A case study under the doctorate program of PLM. The competitors analyzed were McDonald's and Dunkin Donuts
Presentation on a case study (Starbucks In 2012: Evolving Into A Dynamic Global Organization)
#presentation #starbucks #powerpoint #casestudy #slide #strategicmanagement #businessstrategy
This presentation slides are strictly for education purposes.
Please do not download this presentation template and try to make money out of it. Contact me if you want to have your very own business presentation.
Starbucks India or it can be called as Tatabucks. As Starbucks Corporation and Tata Global Beverages announced 50:50 joint venture called Tata Starbucks Ltd. in January 2012 which operate and own outlets branded Starbucks “A Tata Alliance”. An agreement was also signed between Starbucks and Tata coffee that coffee would 100% locally sourced and roasted
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Starbucks Case Study, SWOT, Internal and External Analysis
1.
2. MGM 4139
STRATEGIC MANAGEMENT
CASE STUDY
by : Anaseri Zulkifli EX2833
Hafizullah Mohd Amin EX2906
Michelle Lim Li Yoke EX2885
Mohd Osman Mohd Hassan EX2894
Mohd Johan Khair Azmi EX2889
Rashidi Jaffri Jaafar EX2815
4. STARBUCKS
Journey
Founded as
Seattle coffee
bean roaster and
retailer
1971 1992
The word “Coffee, Tea
and Spices” were under
the word “Starbucks”.
1987
The original owners sold
the Starbucks chain to
Howard Schultz
The word “Coffee, Tea
and Spices” were
removed the word
“Starbucks”.
They made the
mermaid in the center
larger showing just her
face and fins Starbucks changed
its logo for their
40th anniversary.
2011
IPO. 140 outlets,
with revenue
$73.5m
19991996
First store
in Japan
20081989
46 stores, roasting
over 2,000,000
pounds of coffee.
Acquires
Tazo
2003
Acquires Seattle's
Best Coffee and
Torrefazione Italia
Purchased Clover
Brewing System
2012
Acquires
Teavana
2014
21,160 outlets
in 63 countries
Revenue $15b
182k employees
5. Vision
“Starbucks is committed to ethically
sourcing and roasting the highest
quality Arabica coffee in the world. With
stores around the globe, we are the
premier roaster and retailer of specialty
coffee in the world”
6.
7. STARBUCKS
Internal Analysis
1. Huge market expansion to
China, Brazil, India and Russia
Weaknesses
0.15 4 0.60
0.05 4 0.20
0.05 3 0.15
0.05 3 0.15
0.06 4 0.24
0.03 4 0.12
0.05 4 0.20
0.03 3 0.09
0.05 4 0.20
0.03 3 0.09
0.08 1 0.08
0.02 2 0.04
0.07 1 0.07
0.03 2 0.06
0.03 2 0.06
0.03 2 0.06
0.05 1 0.05
0.05 2 0.10
0.03 1 0.03
0.06 1 0.06
2.04 0.61
4. Too dependent on the main
competitive advantage
5. Strong presence in US but not
in other countries
6. Reputation of product dev. and
creativity is vulnerable
7. Customers not willing to wait
for long queue at store
8. Customers not willing to wait
for long queue at store
9. Failure to understand what are
the customers' wants and needs
10. Merchandise items sold at
exorbitant pricing
Strengths W R S W R S
4. Starbucks has monopolistic
advantages over its competitors
5. Acquired Ethos healthy water
for 8million in 2005
6. Acquired Tao in 1999 at
8.1million
7. Owns the trademark for
Frappuccino
8. Aggressive Marketing Team for
promotions
9. Great loyalty card/cash card
system
10. Great designs for merchandise
product line
2. Provide a great work
environment
3. Apply high standards of
excellence in services
1. High pricing for coffee,
cappuccino and latte
2. Less advertising campaign for its
products
3. Products are not available in all
supermarkets worldwide
9. STARBUCKS
External Analysis
1. Globalization makes it easy to
enter international market
Threads
0.01 4 0.04
0.05 3 0.15
0.05 2 0.10
0.05 3 0.15
0.05 3 0.15
0.05 4 0.20
0.03 3 0.08
0.05 3 0.15
0.03 2 0.05
0.03 2 0.05
0.01 3 0.03
0.15 3 0.45
0.05 2 0.10
0.05 2 0.10
0.05 3 0.15
0.03 3 0.08
0.03 2 0.05
0.03 3 0.08
0.03 2 0.05
0.03 3 0.08
1.48 1.42
4. Increasing competitors in the
market
5. Competitors start to market their
products in hypermarkets
6. Increase in supply chain cost due
to competitive market
7. Brand boycott in Malaysia due to
conflicts between country
8. Global expansion barriers i.e.:
India
9. Environmental: Green techniques
are more costly
10. Social-Cultural issue: Food served
contains too much carbohydrates
Opportunities W R S W R S
4. Demand for healthy and non-
chemical F&B products
5. Go Green marketing campaign
attracted the public
6. Coffee imports are duty-free &
quota for purchases is unlimited
7. Coffee is a daily routine for a lot
of working adults
8. Social Media can be a useful
tool for marketing
9. Demand for light food and
coffee over meetings with client
10. Demand for packed instant
coffee
2. People are looking for free
internet connection
3. Express food are getting popular
to save time
1. ↑inflation rates creates a
demand in lower priced products
2. Many companies are pricing
their products cheaper
3. Increase in hypermarkets and
economical supermarkets
11. TOTAL IFE = 2.65
TOTAL EFE = 2.90
Threads
1.42
Opportunities
1.48
Strengths
2.04
Weaknesses
0.61
STARBUCKS
Internal – External Matrix
Strong
3.0 to 4.0
Average
2.0 to 2.99
Weak
1.0 to 1.99
High
3.0 to 4.0
Medium
2.0 to 2.99
Low
1.0 to 1.99
I II III
IV V VI
VII VIII IX
IFE = 2.65
EFE = 2.90
Grow & Build
• Backward, Forward, or
Horizontal Integration
• Market Penetration
• Market Development
• Product Development
Hold & Maintain
• Market Penetration
• Product Development
Harvest or Divest
• Retrenchment
• DivestitureHold and maintain strategy
Focus on increasing market penetration and product
development
The tactical strategies should focus on market penetration
and product development.
12. STARBUCKS
SWOT Analysis
Strength Weakness
Opportunity Thread
• No. 1 brand in
coffeehouse segment.
• Strong brand image
• Largest coffeehouse
chain in the world
• Competitors price is the
major influence over
firm’s profit
• Product pricing
• Negative publicity
• To extend supplier
network
• Increase product
offerings
• Expansion of retail
operations
• Rising coffee beans and
dairy products
• Increased competition from
local cafes
• Supply disruptions
• Product boycott
S W
O T
13. STARBUCKS
SWOT Matrix
SO Strategies
• Add a few new in-store (S2, O1)
• Offer a new product instead of
coffee. (S3, O3, O2)
• To carry out improvements and
diversity on existing products
(S1, S3, O2)
WO Strategies
• Purchase land to build new store
(W1, O3)
• Reduce price (W2, W1, O3)
• Do a promotion (W2, O2)
• Do some charity work to avoid
customer negative thinking (W3,
O3)
ST Strategies
• Build a coffee plantation (S3, T1,
T3)
• Maintain and diversify the
product. (S1, T2)
• Show support to a number of
global issues such as creating a
campaign on social (S2, T3)
WT Strategies
• Make sure not biased to
anyone. (W3, T3)
• Do not be overstaffed (W1, T2)
Strength Weakness
OpportunityThread
15. Recommendation
• Starbucks should reduce their price by producing a
new product of coffee using cheaper beans.
• Special discounts promotions to increase the sales.
This is also to face competition from nationwide
coffee manufactures.
• Starbucks can effectively pursue Focus-Based
Strategy
• Advertisement can be developed through internet,
give brochures, do road shows
16. EPS Analysis
Earnings Per Share (EPS)
Earnings Per Share : Net Income – Dividend on Preferred Stock
(EPS) Weighted Average Common Shares Outstanding
• Also called net income per
share
• Market prospect ratio that
measures the amount of net
income earned per share of
stock outstanding
• A good measure of
profitability
• Gives a view of the
comparative earnings or
earnings power of the firm.
18. EBIT Analysis
Earnings Before Interest & Taxes (EBIT)
• Also referred to as "operating
earnings", "operating profit"
or "operating income“
• Measures the profitability of a
company without taking into
account its cost of capital or
tax implications.
• Important because it is an
indirect measure of efficiency
• Higher the operating income,
the more profitable a
company's core business is
EBIT = Revenue – COGS – Operating Expenses
20. Ratio Analysis
Liquidity Ratio
• The higher the better
• 2008 : 0.8 increased to 2010 : 1.5 = CR
• 2009 : 0.6 increased to 2010 : 1.2 = QR
• Starbucks has good ability to clear of its current liability.
21. Ratio Analysis
Leverage Ratio
• The lower the better
• 2008 : 0.2 decreased to 2010 :0.1
• Starbucks relies less on debt financing.
• Good internal or capital financing capabilities of the company.
22. Ratio Analysis
Activity Ratio
• The higher the better
• ITR, TATR, ACPR show declining pattern
• Slow movement in business activities.
• ARTR is increasing , good payment from
debtors.
23. Ratio Analysis
Profitability Ratio
• The higher the better
• Very good indication. Good sales and return ratio towards all
stakeholders.
• Example, Net Income increased by 200% in 2009-2010.
• Good strategies, operation, asset managements, and sales promotions.
24. Conclusion
• Overall Starbucks has maintained a competitive
advantage since creating its original blue ocean of
bringing quality, bistro-style coffee choices to the
masses.
• In order to stay current it will need to focus on its core
competencies.
• To remain competitive, they need to create new value
innovation.
• Rather than creating more new products, we think
their strength lies in their brand and by enhancing the
connection to their loyal customers
25. Conclusion
• Overall Starbucks has maintained a competitive
advantage since creating its original blue ocean of
bringing quality, bistro-style coffee choices to the
masses.
• In order to stay current it will need to focus on its core
competencies.
• To remain competitive, they need to create new value
innovation.
• Rather than creating more new products, we think
their strength lies in their brand and by enhancing the
connection to their loyal customers Thank You