The document outlines a comprehensive analysis of Starbucks, focusing on various political, economic, social, technological, and environmental issues affecting the business. It includes insights into advertising challenges, competitive forces, value chain analysis, and a SWOT analysis highlighting strengths, weaknesses, opportunities, and threats. Starbucks' commitment to sustainability and responsible sourcing is emphasized, along with specific examples of their initiatives and legal considerations.

1. INSTRUCTOR:
Min Carter, Ph.D.
GROUP MEMBERS: Nguyen Binh Ly Phuong
Quach Thanh Nguyen Uyen
Le Anh

3. Our Mission: to inspire and nurture the human spirit
– one person, one cup and one neighborhood at a time.

5. TV ADVERTISING
CAMPAIN

7. Issues:
Taxation Policy
Trade regulations
Governmental Stability
Unemployment Policy
Laws
…
Example: Hong Kong,
Thailand, Africa…
1. Political issues

8. 2. Economical issues
Inflation rate - 10%
Growth in spending power – Average Income
Rate of people in a pensionable age
Boom

9. 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

12. 4.
TECHNOLOGICAL
Technology has been
played a vital role in
Starbucks
 Example:
 Starbucks card

13. Nothing is more important
than espresso machines
designed our custom.
We have designed
special types of
bottles.

14. 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

15. 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

16.  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

17. NAME AND LOGO OF STARBUCKS GET
INSPIRATION FROM:
CARTOON NOVEL
COMIC NOTHING

18. NOVEL

19. Porter’s Five Forces Competitive
Analysis

20. 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

21. •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

22. •New entrants: Moderate
The market is highly saturated and require substantial
amount of financial resources.
Little product differentiation.

23. •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.

24. •Substitutes: High
There are many kind of substitutes products, such as tea,
soft drinks, juice, etc.

25. VALUE CHAIN ANALYSIS

26. 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

27. 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

28. STORY OF TABLES

29. Strengths Weaknesses
Opportunities Threats

30. 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

31. THERE ARE ____ MAIN THEME(S)
TO DECORATED IN STORES ?
1 2
3 4

32. ARTISAN MODERNHERITAGE