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Starbucks in 20112: Evolving into a Dynamic Global Organiza

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Freddie Thompson

on 12 March 2014

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Transcript of Starbucks in 20112: Evolving into a Dynamic Global Organiza

IDENTIFICATION OF ALTERNATIVES
Freddie Thompson
Alexy Levy
Richard Cabrera
Starbucks in 2012: Evolving into a Dynamic Global Organization
STARBUCKS HERITAGE
The Starbucks Story 
Our story began in 1971. Back then we were a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. 
 
Today, we are privileged to connect with millions of customers every day with exceptional products and nearly 18,000 retail stores in 60 countries. 

Company Timeline
MISSION STATEMENT AND PRINCIPLES
OUR MISSION: TO INSPIRE THE HUMAN SPIRIT-ONE PERSON, ONE CUP AND ONE NEIGHBORHOOD AT A TIME

Guiding Principles
Our Coffee
It has and always will be about the quality. We're passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done.
Our Partners
We're called partners, because it's not just a job. It's our passion. Together we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard.
Our Customers
When we are fully engaged, we connect with laugh with, and uplift the lives of our customers- even just for a few moment. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It's really about human connection

Our Stores
When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside.

Our Neighborhood
Every store is part of a community, and we take responsibility to be good neighbors seriously.
Our Shareholders
We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders
Number of Starbucks Locations Worldwide, Fiscal Years 1987-2011 and April 1, 2012
2012 Worldwide Total:
17,420
U.S. LOCATIONS; 10,875

International Locations of Company-operated and Licensed Starbucks Stores:
6545
SWOT ANALYSIS
SWOT ANALYSIS
STRENGTHS
STRONG BRAND IMAGE
HIGH QUALITY PRODUCTS AND SERVICES
THE STARBUCKS EXPERIENCE
LOYAL CUSTOMERS
STRONG RELATIONS WITH EMPLOYEES
STRONG CORPORATE SOCIAL RESPONSIBILITY
WEAKNESSES
HIGH PRICE
HIGH CONCENTRATION IN U.S. MARKET ( MORE THAN 65%)
HEALTH CONCERNS OF SOME PRODUCTS
LIMITED MENU FOR KIDS
OPPORTUNITIES
INTERNATIONAL EXPANSION
MORE STRATEGIC PARTNERS
DIVERSIFY PRODUCT OFFERING
THREATS
STATE OF CURRENT ECONOMY
INCREASE IN MARKET PRICE OF COFFEE AND DAIRY PRODUCTS
FLUCTUATIONS IN COFFEE SUPPLY
SUCCESS OF LOWER PRICED COMPETITORS
(McDonalds and Dunkin Donuts)
STARBUCKS
JAPAN
SOUTH KOREA
CANADA
UNITED ARAB EMIRATES
SPAIN
TURKEY
MEXICO
TAIWAN
SUBSTITUTES
STRONG
VARIOUS TPES OF OTHER COFFEE AND TEAS ON THE MARKET
COMPETING SELLERS
DUNKIN DONUTS & MCDONALDS
SELL SIMILAR PRODUCTS SUCH AS COFFEE, TEA, AND DESSERT ITEMS.
BUYERS
STRONG
MORE OPTIONS FOR BUYERS , OTHER COMPETITORS CARRY SIMILAR PRODUCTS
NEW ENTRANTS
WEAK
STRONG INNOVATION AND
PRODUCT DIFFERENTIATION
EXISTING COMPANIES HAVE CONTROL
OF DISTRIBUTION CHANNELS


SELLERS
MODERATE TO STRONG
SATURATED MARKET, RISING PRICE OF COFFEE. SOME SUPPLIERS SELECTED BASED ON QUALITY OF BEANS
PORTERS FIVE FORCES
HOW CAN STARBUCKS INCREASE PROFITS AND CUSTOMER BASE WHILE SUSTAINING THEIR COMPETITIVE ADVANTAGE DESPITE THE INCREADE COMPETITION FROM RIVALS.
PROBLEM/DECISION STATEMENT
STARBUCKS STRATEGIES
STORE EXPANSION
LICENSED
COMPANY OPERATED
STRATEGY TO EXPAND
PRODUCT OFFEREING AND ENTER NEW MARKET SEGMENTS
VERTICAL INTEGRATION
EFFORTS TO MAKE STABUCKS A GREAT PLACE TO WORK
HEALTH CARE COVERAGE
STOCK OPTIONS
STOCK PURCHASE PLAN
WORKPLACE ENVIORNMENT
TRAINING AND RECOGNITION
PURCHASING STRATEGY
CORPORATE SOCIAL RESPONSIBILITY
STRATEGY
ETHICALY SOURCING ALL PRODUCTS
COMMUNITY INVOLVEMENT & CORPORATE CITIZENSHIP
ENVIORNMENTAL STEWARDSHIP
CHARITABLE CONTRIBUTIONS
STARBUCKS SHOULD INCREASE
ADVERTISING TECHNIQUES TO REACH MORE CUSTOMERS. (INTERNET AND TV CAMPAINGS) USE GLOBAL MARKETING ( FACEBOOK, TWITTER, AND INSTAGRAM)
STARBUCKS SHOULD CONTINUE TO EXPAND INTERNATIONALLY INTO EMERGING MARKETS TO GAIN MARKET SHARE AND STRENGHTEN BRAND AWARENESS
STARBUCKS SHOULD CONTINUALLY EVALUATE THEIR COFFEE SUPPLIERS AND SEARCH FOR NEW SUPPLIERS TO HELP REDUCE COSTS AND CONTINUE TO ENSURE GREAT QUALITY OF THEIR COFFEE.
CRITICAL ISSUES
PROFITABILITY
BRAND AWARENESS
REDUCE COSTS
MARKET SHARE
STARBUCKS SHOULD INCREASE MARKET MIX TO INCLUDE A LARGER VARIETY OF SANDWICHES AND BEVERAGE PRODUCTS
RECOMMENDATIONS
Value Chain
ANALYSIS
Analysis
Expansion of at-home product line.
VIA Ready Brew
STARBUCKS SHOULD INCREASE
ADVERTISING TECHNIQUES TO REACH MORE CUSTOMERS. (INTERNET AND TV CAMPAINGS) USE GLOBAL MARKETING ( FACEBOOK, TWITTER, AND INSTAGRAM)
Social Media can create more interactive and loyal customer base.
Investing more funds in global marketing can help Starbucks develop its brand on the Internet.

STARBUCKS SHOULD CONTINUE TO EXPAND INTERNATIONALLY INTO EMERGING MARKETS TO GAIN MARKET SHARE AND STRENGHTEN BRAND AWARENESS
Starbucks should expand internationally to Emerging Markets like India.
Be precautious of not opening to many locations. Additionally a thorough Cultural Analysis should be performed prior to entering the market.

Expansion of at-home product line.
VIA Ready Brew
Through R&D expand their product offering.
STARBUCKS SHOULD INCREASE MARKET MIX TO INCLUDE A LARGER VARIETY OF SANDWICHES AND BEVERAGE
PRODUCTS
Through the acqusition of Evolution Fresh they are now able to offer a wider selection of products.
Through a joint venture Starbucks can work with Kahlua to offer adult beverages at certain locations and to be distributed to retail locations.


STARBUCKS SHOULD CONTINUALLY EVALUATE THEIR COFFEE SUPPLIERS AND SEARCH FOR NEW SUPPLIERS TO HELP REDUCE COSTS AND CONTINUE TO ENSURE GREAT QUALITY OF THEIR COFFEE.
Top Management set goals to acheive 100 percent CAFE practice.
Increasing the number of farmers and suppliers. Giving them more sustainable competitive advantage.
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