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Starbucks

Starbucks. Starbuck’s. Starbucks has been the largest coffee house organization Starbuck sold coffee products through its coffee house chain 17,000 distribution stores globally with its produce diversity Coffee Food Snacks Salads

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Starbucks

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  1. Starbucks

  2. Starbuck’s • Starbucks has been the largest coffee house organization • Starbuck sold coffee products through its coffee house chain • 17,000 distribution stores globally with its produce diversity • Coffee • Food • Snacks • Salads • Starbucks wants to achieve growth on a global scale while remain profitable

  3. Issues Faced by Starbucks • Challenges will come in the form of Culture Differences and Economics • Anti-Globalization policies impeding Starbucks expansion • Despite attempts to be Socially Responsible, Starbucks has failed • Starbucks wants to achieve Globalization while maintaining commitment to Corporate Social Responsibility

  4. Starbucks Strategy • Achieve Global success because of Mission and Vision • Mission is to be able to inspire and cultivate the human spirit • Quality service • Vision is to establish Starbucks as the premier supplier of the best coffee in the world • Not compromising principles to achieve success • Strategic plans involve all stakeholders in the company which includes customers, partners and shareholders • Satisfying customers and employees • Being a Socially Responsible Company

  5. Marketing Strategy • Focusing its core competencies in order to differentiate • Created a standard for their coffee • Leverage of the company to many products and markets and creating ideas that are hard for competitors to imitate • Created a standard for their brand • Advertising • Atmosphere

  6. Market Structure • Coffee is an important commodity • Estimated that 2.25 billion cups served • Coffee shops most popular in Industrialize Countries • Market expected to continue to grow • Highly Competitive • Easy to enter market • Differentiation required • With many competitors there are many substitutes • Many global competitors • Some of Starbucks North American Competitors achieving global success

  7. Competition • Quick service restaurants and the specialty coffee shops • Dunkin Donuts • McDonald’s • Panera Bread • Second Cup • Many competitors in Domestic as well as International Market • McDonald’s • Costa Coffee • Competitors able to offer profitable substitutes • Same products at cheaper prices

  8. Global Issues • Political Issues • Country’s attitude • Government bureaucracy • The political stability • The monetary regulations • Economic Issues • Recession • Country Cultures Differ • Currency differences • Tariffs and trade barriers

  9. Financials • Starbucks total revenue increased by 10% to approximately 3 billion in 2011 • Projected growth intended to increase revenue each year • Managing board of directors should implement appropriate policies • Cost of marketing should maintain at a minimum • Store globally should be evaluated to ensure consistency growth • Marketing should increase the figure by 15% • Reduce the current supplier costs by 20% through direct purchases of coffee from the producers

  10. Recommendations and Conclusion • The management has realized that it must safeguard and develop its brand name and reputation so that it can bring more success in the future. • Starbucks needs to embrace technology • Capital investment in order to set up distribution stores across the globe • Starbucks need to change the organizational structure to reflects changes in the organizational strategy • Starbucks has to perform a number of strategic reviews that involve financial or economic assessment and breakdown

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