Starbuck

STARBUCKS STRATEGY

Outline Introduction to Starbucks Company Profile Timeline Starbuck Strategy 7S Model SWOT Wrap Up

Introduction Starbucks Corporation – It is an American company

founded in 1971 Seattle Washington, is a premier roaster, marketer and retailer of specialty coffee around the world.

182,000 employees across 19,767 Companies operated & licensed stores in 62 Countries.

President and CEO - Howard Schultz. Places high value on ethical behaviour. Their Product mix includes roasted &handcrafted

high quality/premium price coffees , tea , a variety of fresh food items & other beverages.

Company Profile

Starbucks’s logo is inspired by the sea featuring a twin-tailed siren from Greek mythology.

Our Coffee: Believes in serving the best coffee possible - goal is to grow our coffee under the highest standards of quality using ethical sourcing practices- our coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality Arabica beans.

Our Stores: Perfect place for meeting friends and family or enjoying a quiet moment alone with a book

Contd… Our Partners: Our employees, who we call partners, are at the

heart of the Starbucks Experience- our store partners are committed to coffee knowledge, product expertise and customer service.

Our Products:

1) Coffee: More than 30 blends and single-origin premium Arabica coffees.

2) Handcrafted beverages: Fresh-brewed coffee, hot and iced espresso beverages, coffee and non-coffee blended beverages, Vivanno smoothies and Tazo teas.

3) Merchandise: Coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gift items.

4) Fresh Food: Baked-pastries, sandwiches, salad, oatmeal, fruit-cups.

Timeline

1971- Starbucks founded by Jerry Baldwin, Zev Siegel and Gordon Bowker as a single store in Seattle’s Pike Place Market.

1980 - Starbucks had become the largest roaster of coffee in Washington.

1982- Schultz was hired as the marketing head at Star bucks. 1983- While travelling in Italy, Schultz experiences Italian

Coffee bars and inspires him. 1985- Schultz leaves Starbucks to open II Giornale, a company

serving espresso drinks using Starbucks coffee beans.

Contd…

1987- – Il Giornale acquired Starbucks and changed the name into Starbucks Corporation.

1992- Starbucks Company goes public. 1993- Opens first roasting plant in Washington. 1999 – Starbucks acquired Tazo Tea. 2000 – Acquired Hear Music, a San Francisco-based

company. 2003 – Starbucks acquired Seattle’s Best Coffee 2011- Celebrates 40th anniversary

Starbuck strategy

Rapid store expansion strategy: Domestic store expansion International store expansion Employee Training and Recognition Store ambience Real Estate, Store Design, Planning, and construction.

7S MODEL

Strategy Structure Staffing System Skills Style Shared Values

Strengths

Leading retailer and roaster for brand specialty coffee in the world

Known for providing superior products and services Number 7 on Fortune Magazine's "100 Best Consistent high quality of service Limited number of strong competitors High market share and market growth

Weaknesses

High pricing because of the quality ingredients used Starbucks refuses to guarantee that milk, beverages,

chocolate, ice cream, and baked goods sold in the company’s stores are free of genetically-modified ingredients

Strong presence in the U.S. - more than three quarters of its cafes located in the domestic market

In order to reduce business risk, expansion is needed

Opportunities– High growth of economy and market in Indonesia,

especially in urban areas

– Could diverse their product not only in coffee

– The potential employees are educated people which make it easier to train them

– Strong financial support

Threats

Competitors and copycat brands could pose potential threats Sentimental issue to the bad effect of coffee from society Global financial crisis - makes people tend not to spend Threats of substitute products and services such as colas,

teas or juices that are sold in retails Exposed to rises in the cost of coffee and dairy products

Competition

Mission StatementOctober 2008 - Present

“We inspire and nurture the human spirit- one person ,one cup, and one neighbourhood at a time”