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Shereen Mathew

on 9 October 2013

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Transcript of Starbucks

Starbucks SWOT analysis
The evolution from local to global

design by Dóri Sirály for Prezi
The Starbucks story
Competitive Advantage
Business strategy
Starbucks has evolved from coffee beans, coffee equipment and education in Seattle, to cafe with diverse product lines worldwide.

How did they do it?

Corporate Responsibility
'Build a company with soul that can - and should - have a positive impact on the communities it serves'
Issues and recommendations
Financial performance

Issues: Political, social and environmental

Store expansion

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
R&D activities
Innovation and technological advances
Continuous quality improvement
Marketing and brand-building activities
High-quality inputs
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.

Ethical Sourcing
Farmer support
Environmental stewardship
Energy & water consumption
In-store recycling
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
Affordable luxury
Broad product and service offering
Vertical integration
Sourcing of beans
Store expansion
Branding - unique look and feel
Company-owned model
Licensing agreements
International presence
Expansion of market segments
Specialty sales group
Product diversification through joint ventures
People & Organisation
Attraction, motivation and reward through
Competitive salary
Values and principles
The magic bean shop
The science behind stores
Reducing paper cups
Full transcript