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STARBUCKS

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bego zubieta

on 20 October 2015

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Transcript of STARBUCKS

Inbound Logistics
Operations
Outbound Logistics
Marketing & Sales
Service
GROUP 5
Sandra Escobedo
Amanda Lopez
Silvia Soria
Begoña Zubieta

CORPORATE STRATEGIC ANALYSIS
INTRODUCTION
STRATEGIC PURPOSE
ANALYSIS OF THE ENVIRONMENT
STRATEGIC CAPABILITY
Core Resources & Competences
BUSINESS UNITS
CORPORATE STRATEGY
STARBUCKS
Final assignment
Year 2013-2014
Group recomendation
Strategic purpose of the company
Analysis of the environment
Strategic capability
Business units
INDEX
MISSION
Inspiring and nurturing the human spirit
Offering a "third place"
VISION
To be the leading retailer and brand of coffee by selling the finest quality coffee and related products
Provide "Starbucks experience"
VALUES
- Satisfying customers by all means
- Employees make Starbucks a better company
- Dignity and respect
- Demand the highest quality in all the processes
- Contributing positively to society and environment

STRATEGIC OBJECTIVES
Open more than 3,000 new stores in America
Having 1500 stores in China
More revenues of existing stores and increase licenses in Europe
For 2015
Starbucks strategic purpose
“To expand global retail business to increase market share, by opening stores in new and existing markets, and increasing sales in existing stores”
Having “superior customer service and reflect the personalities of the communities in which they operate building a high degree of customer loyalty”
STAKEHOLDERS
CORPORATE GOVERNANCE
The
fundamental responsibility
of the Board of Directors:
To promote the best interests of the Company and its shareholders by managing the Company’s affairs
- Duty of care
- Duty of loyalty
Flexible
policies
to guide the governance practices
CEOs and finance leaders have an
ethical code
CORPORATE SOCIAL RESPONSIBILITY
Community
Ethical values
Environment impact
Mobilizing employees with customers
Starbucks Community Service Programme
Goal for 2015:
1 million hours of community service per year
Ethical sourcing programmes working with associations
Local economic and social development
Rewable energy, energy conservation, climate adaptation
Goal for 2015: to reduce energy consumption by 25% and to cover 100% of electricity consumption with renewable energy
Greener stores
Recycling and reduction of waste
Promote the use of reusable cups
Corporate strategy
Introduction
U.S. stores



Licensed retail stores
Other initiatives related to the Company’s core business

The revenue contribution from the U.S. fell down this trend will continue as International sales coupled with Consumer Products Group sales contribute more and more to the business overall.
International Stores
Retail store licensing operations in nearly 40 countries
Foodservice accounts in Canada and the United Kingdom

The International segment’s largest markets are Canada, Japan and the UK


Consumer-products group
It sells bottled frappucinos and lattes among other food/drink items to retail chains such as Tesco and Walmart

Starbucks own brand Verismo single-serve espresso brewer


The CPG segment reflects relatively lower revenues, a modest cost structure, and a resulting higher operating margin, compared to the Company’s other two business units, which consist primarily of retail stores.
International business unit with two subsets: China Asia-Pacific (CAP) and Europe Middle East & Africa (EMEA).
The US region also includes Canada, Central America and South America.
Competitive advantage of Consumer-product group
To have the Starbucks experience at any time and at anyplace as the customer is able to buy Starbuck´s products at supermarkets (such as Tesco) or even have the Verisimo machine at home in order to taste products whenever they want.
So they do not have to wait for Starbuck´s opening hours, they neither are going to have problems of shops being crowded or not having any sit.
In 1984, the original owners of Starbucks sold the company to Howard Schultz (current CEO)
The origin of Starbucks dates back to 1971, as a small shop in Seattle, Washington
- More than 9,400 of own shops
- Licensees worldwide
No franchise system
OWN SUGGESTIONS
KEEP INVESTING IN INTERNATIONAL GROWTH
The idea of expansion is already been in process
Further the expansion by globally offering Starbucks products in grocery stores, businesses, and other overseas wholesale accounts.
Bring value proposition to customers in a variety of channels
PRODUCT DEVELOPMENT IN LOCAL CUISINE
So as to
attract new customers
in more international areas
Modify the “Starbucks experience”
according to different cultures
Not just an American coffee shop.
MORE INVESTMENT IN STARBUCKS CORE COMPETENCES
High quality of products
Outstanding customer service
Further the training period for the employees
Increase the quality standard of the products
Focusing on advertising these core values
INCREASE AWARENESS OF CURRENT EFFORTS OF FAIR TRADE COFFEE AND HEALTHIER NUTRITION OPTIONS
Some people unaware of those concepts because other value propositions are more promoted
Attract new customers
Attract more current loyal customers
Thank you for your attention
PESTEL ANALYSIS

Political
Fluctuation in taxation levels in industry
Trade Issues
Political Stability in new marketed areas
Evaluating International economy
Licensing and Permit Costs
Economic
Rise in interest rates
Low growth rates in locations
Consumer Incomes
Competitive pricing from Competitors
Globalization in coffee market
Exchange rates
Sociocultural

People/Places with disposable income
Areas with thriving job circuit
Easy accessibility (transportation)
Aim markets according to demographic


Technological
Maintaining best technology in stores
Efficiency in upgrading
Continuously improving website
Biotechnological developments
Environmental
Biologically degradable material
Methods of waste disposal
Environmental disasters in coffee bean producing countries
Legal
Trade laws (religious laws)
Country tariffs when trading
Employment laws
Abiding local planning regulations
Health regulations
Health Authorities (consumption)


Porter's Five Forces Analysis
Threat of New Entrants -
LOW



market is highly saturated
substantial amount of financial resources
Starbucks is NOT a franchise
Threat of Substitutes -
HIGH
tea, juices, soft drinks, water, energy drinks
Pubs, bars, and other competing coffee shops

Power of Buyers-
HIGH
LARGE
amount of bargaining power
no minimal switching costs
abundance of other coffee offers
Power of Suppliers -
HIGH
demand for coffee is high
only produced in geographical areas
African coffee producers mistreated
Competitive Rivalry-
HIGH

Costa, Mc Donald's, Caribou Coffee, Dunkin Donuts
Small Coffee Shops
At home products
Physical
Human
Financial
Operates 10,000 shops in 10 countries
20,000 stores in 62 Countries
Opens 2 stores p/day
Appx. 151,000 employees

focus on quality
outstanding customer service
product advancements
care for employees
drive to be globally successful
Annual revenue 9.29 Billion
Stock Value 51.26
Higher margins on coffee

Other
Imports beans from:
Latin American Africa
Asian Pacific
Porter's Value Chain

The company’s core business
can change or take shape
in the future
Initial core business:
sell quality coffee (*From 1987 it started to offer everything that goes with a coffee)
FIRST DRIVE-THRU LOCATION
NEW ROASTING PLANT
Primary Activities
FRAPPUCCINO BEBERAGES
NEW STORES IN JAPAN
Starbucks customers are not looking for the price of the coffee but seeking for the quality of the products and the brand image the company offers
This table can also be applied to other shops that have been opened in different geographical market: China, countries in Europe, some countries in Asia, Australia...
EXPAND TO GROCERY CHANNELS (US)
ACQUISITION OF TAZO TEA
Coffee Bean Suppliers
Inventory control
Warehousing system
keeping the coffee beans as fresh as possible
This table can also be applied to the acquisition of Ethos Water (2005), Evolution Fresh (2011), La Boulange Bakery (2012).
Stores/Coffeehouse Management
Distribution
Order fulfillment to all outlets
Advertisements
Promotions
Pricing
Sales and Delivery

ACQUISITION OF HEAR MUSIC
ACQUISITION OF SEATTLE COFEE COMPANY
Customer Service
Customer Relations
Customer brand recognition
Secondary Activities
Company Infrastructure ( Administrative management, planning management, accounting,legal work)
Human resource management(personnel skills, training &development, determining employees salaries & benefits)
Technology Development (design, research & development)
Procurement ( Raw materials, machines and equipment)

High Quality Coffee
"Starbucks Experience"
Strong Branding
Global presence

V
alue
R
arity
Environmental Political Issues in coffee industry can cause rarity in coffee beans
I
nimitably
easily imitated for cheaper price through competitors but quality is not.
N
on- Substitutable
Overall, other resources would not be functional substitutes to coffee
Tea, Soda Etc.
SWOT
Strengths
Weaknesses
Opportunities

Highly developed brand
Valued Employees
Good Supplier Relations
Global
Product addiction
Store Experience
Total control

Aggressive expansion can be risky
Lack of Internal focus
Continually rising prices
Health Implications on consumption
Lack of international presence

Focus on emerging economies
increase technological advances for in store use
more promotions/coupons/discounts

Threats

Complying with Intl. Gov. for production & Distribution
Competitive environment
Negative Publicity (Fair Trade, Farmers in Africa)
Economy downturn
Consumer trends
Full transcript