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Business level strategy of starbucks
Business level strategy of starbucks
Development and history of Starbucks
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An Analysis of Starbucks
Company History
Starbucks was opened its first coffee company in Seattle’s Pike place
Market on 1971. The name was taken from the first mate in Herman
Melville’s Moby Dick (Company Profile, 2005).
Products
Beverages: Brewed coffees, Italian-style espresso, cold blended
beverages, roasted whole bean coffees, tea products, fruit juice,
sodas, and coffee liqueur.
Food: Sandwich, Salads, pastries and ice creams.
Non food items: Mugs, Travel tumblers, coffeemakers, coffee
grinders, storage containers, compact discs, games, seasonal novelty
items, Starbucks card, media bar.
International Business Development
In order to achieve Starbucks mission to be a global company, the
development strategy that Starbucks implemented to adapt with variety
market and local need are: joint ventures, licenses and company owned
operation (Starbucks Corporation, 2005).
There are 4,666 Starbucks stores which are operated and 2,222 are
licensed operation in US which are spread out in 50 states. For the
international location, StarbucksÂ’ store can be found in 34 countries
outside of the United States and 1,049 stores are company owned
operated in Australia, Canada, China, Germany, Singapore, Thailand and
the U.K. and 1,734 are joint ventures and licensed operation (Company
Fact Sheet, 2005).
Starbucks goes International
1996 Starbucks open in Tokyo, Japan. Nowadays, there are more than 500
retails shops in Japan. Furthermore, Starbucks also open in Hawaii and
Singapore.
1997 Starbucks open in Philippines
1998 Starbucks open in U.K., Taiwan, Thailand, New Zealand and
Malaysia.
1999 Starbucks open in Beijing, Kuwait, South Korea and Lebanon.
2000 Starbucks open in United...
... middle of paper ...
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At this time Starbucks counts approx. 165 cafes. On March 7th, 2001 Starbucks eventually moved to Europe and opened their first cafe in the Old World: Zurich, Switzerland. Today, the company has more than 16,000 cafes in more than 35 countries. Wilson.
The company started its activity in 1971 as small coffee shop located in Seattle specialized in selling whole arabica coffee beans. After being taken over by Howard Schultz in 1982, following a rapid and impressive growth, by mid 2002 the company was the dominant specialty-coffee brand in North America, running about 4,500 stores, 400 international stores and 930 licenses.
Starbucks is one of the most recognizable and successful coffee brands in the world. Starbucks believes in serving the best coffee possible. Starbucks’ international market that was expanded into China in 2002, still has only a tiny part of the Chinese beverage market (Harrison et al., 2005). The company President, Charles Shultz is ascertaining the possibility of establishing new coffee houses in China.
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars. These coffee bars were based on an idea that was originally proposed to the owner who recruited him into the corporation as manager of retail and marketing. Overall, Schultz strategy for Starbucks was to grow slow. Starbucks went on to suffer financial losses and overhead operating expenses rose as Starbucks continued its slow expansion process. Despite the initial financial troubles, Starbucks went on to expand to 870 stores by 1996. Sales increased 84%, which brought the corporation out of debt. With the growing success, Starbucks planned to open 2000 stores by year 2000.
This will ensure cash inflow even if there is inflation in the market. So FedEx need to target corporate sectors for their delivery. This will be a win-win strategy where FedEx revenue can be increased nearly to UPS.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
With ease of access, new products, and continual growth combined with the continued emergence from an economic recession, there is no arguing the success of the fast food industry. From the key success factors to the breakdown of strengths, weaknesses, opportunities, and threats and Porter’s 5 forces model, I believe the fast food industry is attractive. It is attractive because of the amount of money involved in but the downside is the brand saturation of the market which makes it unattractive. But if the right things are down and you hit a niche within the industry, you are golden.
Expansion of Domestic and International retail markets: With the target of 2000 stores by year 2000, Starbucks is on an expansion mode. They are expanding into the international markets and simultaneously they are diversifying in the domestic markets also. Initiatives like Frappuccino and the Doppio cart are part of this.
accessories and equipment, a selection of quality teas and a line of compact discs. Starbucks has over 8,700 retail locations in North America, Latin America, Europe, the Middle East, the Pacific Rim and is continuing to grow. When coffee is considered Starbucks has developed a worldwide name for itself and has become a huge success.
The foundation of Starbucks first international market outside of North America started with Japan in the year 1996 when it opened an outlet in Tokyo’s Ginza district as a joint venture between Sazaby League and Starbucks Coffee International, the international arm and subsidiary of Starbucks Coffee Company.
Ford Motor Company is an American multinational automobile maker . Henry Ford founded the company in 1903. It is the 2nd largest U.S based automaker and it ranks 53rd in the Forbes list of World’s Biggest Auto Companies 2013.Ford has become a pioneer in its field to a great extent by efficiently leveraging social media. This helped Ford accomplish long-term goals over social media by deploying one-off campaigns and making a regular commitment to marketing and customer engagement on social media.
Nuclear proliferation is the spreading of nuclear technology to countries that are not recognized as “Nuclear Weapon States” by the NPT (Nuclear Non-Proliferation Treaty). The Nuclear Proliferation Treaty is a treaty that was opened for signing in 1968, and was set into force in 1970. 25 years after the treaty was put into force, the NPT parties met in May of 1995 and decided to extend the treaty indefinitely. The treaty recognizes 5 states as “nuclear-weapon states”, these states are the United States of America, United Kingdom, France, and China. These states are authorized to produce and carry nuclear missiles, and other forms of nuclear armament. The Catholic Church agrees with the intentions of the Nuclear Non-Proliferation Treaty to promote peaceful uses of nuclear energy, and to push the ultimate goal of nuclear
Nuclear proliferation is seen as a growing problem in the United States. Some people think that it is fine to ignore the proliferation while others want the solution that comes with the nonproliferation agreement. There is some debate between whether nuclear proliferation is a negative thing or if nuclear weapons can be used for peace. While nuclear proliferation is a negative thing there is people on the other side of the argument who say nuclear weapons are needed in order to find peace (Good Will Blogging). Nuclear proliferation can be solved by the nonproliferation agreement but there are more than one way to solve a problem.
Being a part of the red cross club and the student ambassador club fuels my passion to aid people in need. Making Christmas cards for soldiers, answering questions parents may have at freshmen orientation and helping out the librarians at the school library creates a feeling in the pit of my stomach that is both deserving and addicting. Other students volunteer at hospitals and although I did not have the opportunity to, I feel that volunteering at my school and at various locations around New York city is rewarding enough. As a result of my volunteering experiences, I periodically attempt to help anyone who needs it. Many people believe that I am too generous because of this but because I live
Starbucks has identified high value opportunity in China, India, Brazil and Japan. The large expansion opportunity of twelve billion in China alone is enough to drive Starbucks to expand globally. The organization has planned to double its footprint to 3000 stores in China by 2019 ("Starbucks Details Five-Year Plan to Accelerate Profitable Growth", 2014). Starbucks realizes that eventually there will be a diminishing return on their existing market within the US due to market maturity and there are only two ways to expand through diversification in their offerings and entering new markets. Given the international opportunity for growth and expansive tea market in Asia, the company will enjoy the benefits of the growth opportunity. Management’s decision to continue to grow globally is a driving force that has yielded