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Transcript of Starbucks
The evolution from local to global
design by Dóri Sirály for Prezi
The Starbucks story
Starbucks has evolved from coffee beans, coffee equipment and education in Seattle, to cafe with diverse product lines worldwide.
How did they do it?
'Build a company with soul that can - and should - have a positive impact on the communities it serves'
Issues and recommendations
Issues: Political, social and environmental
We will be talking about...
Starbucks competitive strategy
Key policies, practices, business principles and procedures
Social responsibility strategy
Issues and recommendations
Broad differentiation strategy
The 8 Keys
Product features, design and performance
Customer service / additional services
Innovation and technological advances
Continuous quality improvement
Marketing and brand-building activities
Human resource management activities
Starbucks in 2012
Net revenue = a record $13.3 billion
Opening of 1,063 stores globally
Return of more than $1 billion to its shareholders.
Energy & water consumption
Beauchamp, L. L. & O’Connor, A. 2012, ‘America’s Most Admired Companies: A descriptive analysis of CEO corporate social responsibility statements’, Public Relations Review, vol. 38, pp. 494 - 497
Starbucks Global Responsibility Report, 2012, accessed http://www.starbucks.com/responsibility/global-report on 23rd September 2013
Argenti, P. 2004, ‘Collaborating with Activists: How Starbucks Works with NGOs’, California Management Review, Vol. 47, No. 1 Fall
Thompson, A.A,. Strickland, A.J. & Gamble, J.E. (2014) Crafting and Executing Strategy: The Quest for Competitive Advantage, 19th Edition, McGraw Hill. Thompson, A., 2012, ‘Starbucks in 2012: Evolving into a Dynamic Global Organisation’
McDonald’s 2012 Annual Report (2012). Retrieved September 21, 2013 from <http://www.aboutmcdonalds.com/mcd/investors/annual_reports.html>
Porter, M, 2008, Competitive Advantage: Creating and Sustaining Superior Performance
Starbucks 2012 Annual Report. (2012). Retrieved September 21, 2013 from <http://www.investor.starbucks.com>
Thompson, A., & Gamble, J. (1999). Starbucks Corporation. McGraw-Hill Higher Education. Retrieved from http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html
Forbes Magazine. (2013, May 25). Starbucks & McDonald’s winning strategy. Retrieved September 15, 2013 from http://www.forbes.com/sites/panosmourdoukoutas/2013/04/25/starbucks-and-mcdonalds-winning-strategy/
Kotha, S., & Glassman, D. (2003). Starbucks corporation: Competing in a global market. Retrieved from Foster School website: http://www.foster.washington.edu/centers/gbc/globalbusinesscasecompetition/Documents/Cases/2003Case.pdf
Helliker, K. (2010, May 12). Starbucks targets regular Joes. Retrieved September 10, 2013, from http://online.wsj.com/article/SB10001424052748703565804575238584204665378.html
2004, ‘Starbucks - taking on the world’, Strategic Direction Vol. 20 No. 7 pp 13 - 15
Coffee beans to coffee shop
A place to meet
Broad product and service offering
Sourcing of beans
Branding - unique look and feel
Expansion of market segments
Specialty sales group
Product diversification through joint ventures
People & Organisation
Attraction, motivation and reward through
Values and principles
The magic bean shop
The science behind stores
Reducing paper cups