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Starbucks history flashcards
Starbucks history flashcards
Describe how Starbucks started and their major accomplishments
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Starbucks is an American coffee company based in Seattle, it was founded in 1971. Starbucks use twin-tailed mermaid as their logo, the reason behind it is because, according to a greek mythology the twin-tailed mermaid used to seduce mariners into jumping out of the boat in to the water, it just simply means that it is irresistible. Today, Starbucks is one of the largest coffeehouse industry in the world. They provided high quality coffee, pastries and snacks. Regardless of its expensive price customers are still willing to pay for its quality. When starbucks enter the Australian market in 2000, It was successful. Starbucks targeted the capital cities before going into regional centers. The reason is simple, as demand for pricey coffee is higher in the capital cities, and during that time less competition are expected. Starbucks became the leading and competitive company in the coffee chains globally. By 2007, Starbucks has opened more than 84 company-operated stores across the country. It was until mid 2008, that Starbucks realise its peak of success has ended in the Australian market. Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks. Finally, this report will identify recomendations for Starbucks to minimze future loss and to compete with major competitors like McCafe and Gloria Jeans Coffee. Starbucks was doing well at the Australian market for the few intorduction year, as it provide a unique original service, in which other coffee shop at that time did not provide. It was until 2003, the year in which McCafe was introduced. McCafe provided services and coffee similar to Starbucks, but in far cheaper price. The demand for Starbucks decreases significantly, and as for McCafe the demand was booming.
5). In October of the same year Starbucks entered New Zeland. The company had a franchisee for KFC and Pizza Hut, to open retail stores in the country (The Seattle Times, 1998, para. 2). Then Starbucks took the market of Taiwan, Thailand, Malaysia. In 1999 the brand extended to China, South Korea and Lebanon. The next year it added 7 more countries, then 3 more in 2001, and then 9 more in 2002. After that Starbucks started just filling the gaps in the cities of those countries, and add the new ones to the list of its global marketing.
The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Leadership sets up the mission “to establish Starbucks as the most recognized and respected brand in the world.” In doing so, they have created a set of industry-leading, comprehensive coffee-buying guidelines addressing coffee quality, financial transparency, social and environmental responsibility. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Corporation, 2007).
e number one concern in all business is profit. When someone wonders why Starbucks’ business is so successful they can find their answer in the statistics. In Q3 2015, the total net revenues rose about 18% amassing a new record at $4.9B. The company cited this substantial increase in revenue to obtaining Starbucks Japan and the opening of 1,592 new stores in the last year.1 The company also witnessed a 22% rise in profitability credited to sales leverage.2 Starbucks saw continued growth globally, in the Americas, and the China/Asian Pacific at 7%, 8%, and 11%, respectively, accounting for an increase in customer transactions climbing towards 18M in the U.S. and 23M globally.3 These increases across the board could be accredited for the 21%
Unlike almost other countries, Starbucks customer satisfaction scores began to decline in Australia. The first store opened in 2000 in Sydney. To date, Starbucks Australia has 23 coffee houses in Sydney, Brisbane, the Gold Coast and Melbourne. Customers say Starbucks has become the Third Place in their daily lives (Michelli 2008). The atmosphere of Starbucks stores is designed to be homey and intimate, at the same time providing customers with their own personal space to use as they wish. In there, customers
An American coffee company founded in Seattle, Washington in 1971 by three partners, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who were inspired by Alfred Peet, the roasting entrepreneur. Once Starbucks chain was sold to Howard Schultz, the expansion initially began and end up with 46 stores across Northwest and Midwest within 2 years after the first opening. According to the information provided on November 2016, Starbucks is now having more than 24,000 stores worldwide. Nowadays, Starbucks also plans and operates more on its service to offer customer best coffee experiences with various technology based improvements while increasing its sales continuously. As a result, the reason why Starbucks is chosen as our study
Starbucks did not escape the common practice of adapting and integrating the business to different geographic regions, but they did stick to their guns when it came to their standard product line-up and their no-smoking policy. Surprisingly, these conditions were met with wide acceptance. Analysts felt the real challenge would be in the European marketplace, what with coffeehouses on every corner to compete with. Again, the stores did very well, mainly because of the newer, cleaner environment they provided compared to the older locations of established houses.
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
Another challenge that Starbucks is are dealing with a competitor. There are coffee shops that many around the world and could stand to generate customer is important. Their main competitors are Dunkin Donuts, McDonald's and nestle. It is important to Starbucks know their competitors and what they are doing.
... middle of paper ... ... Strategic planning kit for dummies, 2nd edition. Retrieved from http://www.dummies.com/how-to/content/strategic-planning-diversification.html “Starbucks”.
Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. (Bramhall)
If I was the CEO of Starbucks I would look at different things. One thing I noticed on Starbucks page was that they implemented a Starbucks Rewards system that is free and offers certain things after so many purchases spent at Starbucks. Free refills, free drinks after so many visits and some other perks were part of their newest rewards programs. Starbucks has great growth potential and should expand their tea and fresh juice products.In addition consumer tastes and lifestyles shift towards more snacks and beverages options, Starbucks should tailor its menu’s and expand to give more healthy product offerings. Starbucks should make significant investments in advertising and marketing initiatives in the face of increased competition in their market. I do not recall ever seeing a commercial or hearing a radio ad for Starbucks or their products. I have heard of Tim Hortons, a coffee chain and a Starbucks competitor, in the Northern areas of the United States. Another factor would be costs of products. With competitors like McDonalds and other coffee shops offering similar products cheaper customers may switch to the lower priced products due to the current economy. (Geereddy, N. (n.d.).
Starbucks the world’s largest coffee company that has announced its long term objectives and its starting with expansion of more stores and growth strategies as it will start to enter the tea industry and boost the consumer relationship. The company plans to do the following: first by the company having a substantial growth in sales. The company will open more new stores and remodel many more within the next ten years, so that they can capitalize on the Starbucks brand, they will be able to enjoy new products known as the Evolution Fresh juices at all the stores. Starbucks is also booming in China. The revenue has grown and they will start to open new stores in Thailand, Singapore and Australia and all with strong performances
Business Environment – The firm is considered a coffee giant company that is a big brand in the business being able to expand aggressively in the market worldwide before it entered in New Zealand. But the business environment of this country is quite unimaginable for a US based company for it to venture without having a thorough marketing analysis covering all the risks in the venture considering the distance and the traditions which differs a lot in many countries thus making it very unique and incomparable. It is only when the company is able to come up with the correct strategy in entering the business that will make it thriving. Starbucks New Zealand entered the Kiwi market by way of franchise and joint ventures. They partnered with a very stable local business partner called The Restaurant Brands New Zealand Ltd. In this case, the company is able to hurdle the market barriers including business laws, taxation, physical set up, traditional and cultural differences that may come along the way. (Starbucks, 2012)
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.