STARBUCKS COMPANY CASE
AYDIN SANCAK - MEHMET METİN - OSMAN KAYTAN
MANAGEMENT & ORGANIZATION
DECEMBER 2015
• Starbucks opens first store in Seattle’s Pike Place Market.
(Three partners; English Teacher Jerry Baldwin, History Teacher Zel
Siegel and Writer Gordon Bowker)
INTRODUCTION TO STARBUCKS
1971
1982
• Howard Schultz joins Starbucks as director of retail
operations and marketing. Starbucks begins providing coffee
to fine restaurants and espresso bars.
1983
• Howard travels to Italy, where he’s impressed with the
popularity of espresso bars in Milan. He sees the potential to
develop a similar coffeehouse culture in Seattle.
Stores: 1
Stores: 4
• Howard founds Il Giornale, offering brewed coffee and
espresso beverages made from Starbucks® coffee beans.
INTRODUCTION TO STARBUCKS
1985
1987
• Il Giornale acquires Starbucks assets with the backing of
local investors and changes its name to Starbucks
Corporation. Opens in Chicago and Vancouver, Canada.
1988
• Offers full health benefits to eligible full and part‐time
employees.
1992
• Completes initial public offering (IPO), with common stock
being traded on the NASDAQ National Market under the
trading symbol SBUX.
1997 • Establishes the Starbucks Foundation.
Stores: 17
Stores: 33
Stores: 165
Stores: 1.412
• Howard Schultz transitions to chairman and chief global
strategist, Orin Smith promoted to president and chief
executive officer.
INTRODUCTION TO STARBUCKS
2000
• Introduces ethical coffee‐sourcing guidelines developed in
partnership with Conservation International.
2001
• Opens stores in Turkey by Shaya Group.
(First in İstanbul)
2003
• Chairman Howard Schultz returns as chief executive officer.2008
• Expands digital offerings for customers with free unlimited
Wi‐Fi, Starbucks Digital Network.
2010
• Celebrates 40th anniversary2011
Stores: 3.501
Stores: 4.709
Stores: 7.225
Stores: 16.680
Stores: 16.858
Stores: 17.003
191,000 worldwide
employees
$1,714B investment in
two years
#1 Fortune’s global
Most Admired Food
Service Company
On 6 continents, 66 countries
$16,448B revenue , #187 Fortune 500
5
44 years serving customers
STARBUCKS TODAY
#5 Fortune’s global
Most Admired Company
WORLD OF STARBUCKS
TOTAL STORES1
17
33
55
84
116
165
272
425
677
1015
1412
1886
2498
3501
4709
5886
7225
8569
10241
12440
15011
16680
16635
16858
17003
18066
19767
21366
23043
0
5000
10000
15000
20000
25000
1971
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
8
29
Rank of Starbucks
brand value in the world
2
Rank of Starbucks
brand value in the world
for fast food company
Category Brand
Brand Value
2015 M$
1 Technology Apple 246,992
2 Technology Google 173,652
3 Technology Microsoft 115,500
4 Technology IBM 93,987
5 Payments VISA 91,962
6
Telecom
Providers
AT&T 89,492
7
Telecom
Providers
Verizon 86,009
29 Fast Food Starbucks 29,313
Sourc: http://www.millwardbrown.com/BrandZ/2015/Global/2015_BrandZ_Top100_Chart.pdf
STARBUCKS TODAY
WORLD COFFEE CONSUMPTION
(IN THOUSAND 60KG BAGS)
MISSION
To inspire and nurture the human spirit – one person, one cup
and one neighborhood at a time.
VISION
Together we will elevate our partners, customers, suppliers and
neighbors to create positive change. To be innovators, leaders
and contributors to an inclusive society and a healthy
environment so that Starbucks and everyone we touch can
endure and thrive.
CORPORATE STRATEGY
• Maximize market penetration
• Provide a relaxing, attractive social atmosphere
• Offer high-quality products
• Create a great working environment
• Achieve profitability
STORY TO THE START
PRODUCTS
BREAKDOWN OF PRODUCT SALES
Beverages
75%
Food
19%
Packaged and
Single Serve Coffee
4%
Coffee-making
equipment and
other merchandise
2%
GOALS
STARBUCKS ENTRY MODE
TYPE
STARBUCKS RESERVE
SWOT ANALYSIS
PORTER’S FIVE FORCES
COMPETITION
THE STARBUCKS EXPERIENCE
The STARBUCKS EXPERIENCE can be found on
two very distinct levels of the company:
• In its unique corporate culture
• In its passing down of these values to its
partners
TRAINING, TRAINING, TRAINING
SEVEN BIG MOVES
1. Be the undisputed coffee authority
2. Engage and inspire our partners
3. Ignite the emotional attachment with our customers
4. Expand our global presence — while making each store
the heart of the local neighborhood
5. Be a leader in ethical sourcing and environmental
impact
6. Create innovative growth platforms worthy of our
coffee
7. Deliver a sustainable economic model
STARBUCKS TASTING ROOM
THIRD PLACE
Starbucks is known for more than just great coffee, we’re also
known for creating an idyllic “third place” (first place – home,
second place - work, third place – Starbucks) where customers
feel welcome and at home.
THIRD PLACE
SOME TIPS FOR «THIRD PLACE»
MY STARBUCKS IDEA
MY STARBUCKS IDEA
STARBUCKS MOBILE ORDER & PAY
SOCIAL RESPONSIBILITY
1- College Achievement Plan
2- Starbucks Ethical Sourcing of Sustainable
Products
3- Starbucks will donate $0.70 [the average
price of a tree] to Conservation International for
every bag of coffee sold from participating
Starbucks® stores in the US to foster thriving
coffee communities.
4- Veterans and Military Support
DON’T YOU EVER FORGET!
STARBUCKS COMPANY CASE

STARBUCKS COMPANY CASE

  • 1.
    STARBUCKS COMPANY CASE AYDINSANCAK - MEHMET METİN - OSMAN KAYTAN MANAGEMENT & ORGANIZATION DECEMBER 2015
  • 2.
    • Starbucks opensfirst store in Seattle’s Pike Place Market. (Three partners; English Teacher Jerry Baldwin, History Teacher Zel Siegel and Writer Gordon Bowker) INTRODUCTION TO STARBUCKS 1971 1982 • Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars. 1983 • Howard travels to Italy, where he’s impressed with the popularity of espresso bars in Milan. He sees the potential to develop a similar coffeehouse culture in Seattle. Stores: 1 Stores: 4
  • 3.
    • Howard foundsIl Giornale, offering brewed coffee and espresso beverages made from Starbucks® coffee beans. INTRODUCTION TO STARBUCKS 1985 1987 • Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation. Opens in Chicago and Vancouver, Canada. 1988 • Offers full health benefits to eligible full and part‐time employees. 1992 • Completes initial public offering (IPO), with common stock being traded on the NASDAQ National Market under the trading symbol SBUX. 1997 • Establishes the Starbucks Foundation. Stores: 17 Stores: 33 Stores: 165 Stores: 1.412
  • 4.
    • Howard Schultztransitions to chairman and chief global strategist, Orin Smith promoted to president and chief executive officer. INTRODUCTION TO STARBUCKS 2000 • Introduces ethical coffee‐sourcing guidelines developed in partnership with Conservation International. 2001 • Opens stores in Turkey by Shaya Group. (First in İstanbul) 2003 • Chairman Howard Schultz returns as chief executive officer.2008 • Expands digital offerings for customers with free unlimited Wi‐Fi, Starbucks Digital Network. 2010 • Celebrates 40th anniversary2011 Stores: 3.501 Stores: 4.709 Stores: 7.225 Stores: 16.680 Stores: 16.858 Stores: 17.003
  • 5.
    191,000 worldwide employees $1,714B investmentin two years #1 Fortune’s global Most Admired Food Service Company On 6 continents, 66 countries $16,448B revenue , #187 Fortune 500 5 44 years serving customers STARBUCKS TODAY #5 Fortune’s global Most Admired Company
  • 6.
  • 7.
  • 8.
    8 29 Rank of Starbucks brandvalue in the world 2 Rank of Starbucks brand value in the world for fast food company Category Brand Brand Value 2015 M$ 1 Technology Apple 246,992 2 Technology Google 173,652 3 Technology Microsoft 115,500 4 Technology IBM 93,987 5 Payments VISA 91,962 6 Telecom Providers AT&T 89,492 7 Telecom Providers Verizon 86,009 29 Fast Food Starbucks 29,313 Sourc: http://www.millwardbrown.com/BrandZ/2015/Global/2015_BrandZ_Top100_Chart.pdf STARBUCKS TODAY
  • 9.
    WORLD COFFEE CONSUMPTION (INTHOUSAND 60KG BAGS)
  • 10.
    MISSION To inspire andnurture the human spirit – one person, one cup and one neighborhood at a time.
  • 11.
    VISION Together we willelevate our partners, customers, suppliers and neighbors to create positive change. To be innovators, leaders and contributors to an inclusive society and a healthy environment so that Starbucks and everyone we touch can endure and thrive.
  • 12.
    CORPORATE STRATEGY • Maximizemarket penetration • Provide a relaxing, attractive social atmosphere • Offer high-quality products • Create a great working environment • Achieve profitability
  • 13.
  • 14.
  • 15.
    BREAKDOWN OF PRODUCTSALES Beverages 75% Food 19% Packaged and Single Serve Coffee 4% Coffee-making equipment and other merchandise 2%
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
    THE STARBUCKS EXPERIENCE TheSTARBUCKS EXPERIENCE can be found on two very distinct levels of the company: • In its unique corporate culture • In its passing down of these values to its partners
  • 23.
  • 25.
    SEVEN BIG MOVES 1.Be the undisputed coffee authority 2. Engage and inspire our partners 3. Ignite the emotional attachment with our customers 4. Expand our global presence — while making each store the heart of the local neighborhood 5. Be a leader in ethical sourcing and environmental impact 6. Create innovative growth platforms worthy of our coffee 7. Deliver a sustainable economic model
  • 26.
  • 27.
    THIRD PLACE Starbucks isknown for more than just great coffee, we’re also known for creating an idyllic “third place” (first place – home, second place - work, third place – Starbucks) where customers feel welcome and at home.
  • 28.
  • 29.
    SOME TIPS FOR«THIRD PLACE»
  • 30.
  • 31.
  • 32.
  • 33.
    SOCIAL RESPONSIBILITY 1- CollegeAchievement Plan 2- Starbucks Ethical Sourcing of Sustainable Products 3- Starbucks will donate $0.70 [the average price of a tree] to Conservation International for every bag of coffee sold from participating Starbucks® stores in the US to foster thriving coffee communities. 4- Veterans and Military Support
  • 34.