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Current Event Presentation
Transcript of Current Event Presentation
Starbucks Aims to Move Beyond Beans
Starbucks Changing Outlook
Food Network Ratings Drop
Recently, The Food Network dropped Paula Deen's cooking show after her battering lawsuit. Since then the Food Networks ratings have gone down since a lot of her fans have boycotted the channel.
Paula Deen had a Law-suite about a racial comment that she made on her show.
After this the Food Network cut ties
Move to improve the reputation of their company
1971 -Starbucks opens first store in Seattle
1990 -Expands headquarters
1994 -Opens first drive-thru location
1999 -Acquires Tazo Tea
How this relates to business
The Food Network was following its ethics code
Tried to appeal to the people who got offended by the remark
Staying up to date with the show on their channel and how that affects their views -- good business management
Spent $750 million acquiring three businesses
Struggled to bring in business during the
morning hours (Coffee accounts for 3/4, food is 19%)
Attempting to bring these businesses into Starbucks stores
There are over 20,891 Starbucks locations throughout 62 countries
The Food Network was right in letting go of Paula Deen
It is not professional to make racist comments on National Television
2002 -Establishes Starbucks Coffee
Trading Company (5,886)
2013 -Opens first juice store-evolution
1. Do you think Starbucks should focus on its coffee or continue to branch out to different product lines?
2. If you owned a TV channel similar to The Food Network, and one of your hosts said a socially unacceptable comment, what would you do?
Graph of ratings for the month of June for The Food Network
Focus on coffee
Improving the quality of their food
Branching out to only one new product line at a time
La Boulange will have to effectively transport freshly baked goods to every store or instal the appliances to make the goods each day
Might loose their individuality
Pink paper at 3,000 of 10,000 stores
San Francisco based
Preparing to open stores similar to yogurt shops, levers allow customers to mix juices
Jimmy Rosenberg (founder) sold Naked to Chiquita Brands (1991), then left
1) Squeezed fresh 2) Bottled cold 3) Enjoy
Sold in whole foods
Goal is to be "heaven of tea"
Atlanta, Georgia (1997)
Acquired by Starbucks for about $620million
Offer blend of teas but use artificial flavoring
Individual cups of tea are also offered
"part tea bar, part tea emporium."