Strategic Management - Starbucks Case

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Learning Starbucks case study

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Microsoft PowerPoint - Present case5_20080704 morning [Compatibility Mode]

b kb kStarbucksStarbucksInternationalInternationalInternationalInternational

OperationsOperationsOperationsOperations

ByGroup5ByGroup5

ALLSNOTWELLALL SNOTWELLWITHSTARBUCKS

US 2003 US

Starbucks NetIncome 31% 21 % Starbucks Product 1%

Starbucks Operation US Japan,Europe,MiddleEast

Focus US

BACKGROUND NOTEBACKGROUND NOTE

1971 JerryBaldwin,ZevSiegel,GordonBowker

Seattle StarbucksSeattle Starbucks

1981 Schultz Hammarplast

Starbuck Starbuck

8 S h l S b k M k i M1982 Schultz Starbucks MarketingManager

1983 Schultz Milan

Starbucks

BACKGROUND NOTEBACKGROUND NOTE

1985 Schultz IIGiornale Seattle

1987 Starbuck Schultz Starbuck1987 Starbuck Schultz Starbuck

1990 Schultz Starbuck Chicago LosAngeles1990 Schultz Starbuck Chicago,LosAngeles

Overhead Schultz

1991

1992 NewYorkStockExchange $17

BACKGROUND NOTE

St b k

BACKGROUND NOTE

Starbuck

Di t ib ti C t DistributionCost

1818 19941994 145145 19941994 145145

Partner :CanadianAirlines,UnitedAirlines, :StarwoodHotels,BarnesandNoble

Serve Starbuck

BACKGROUND NOTEBACKGROUND NOTE

ProductInnovation

Ice cream Pepsi Product

Growth20% 1991 6 8%

US Starbucks

2003Starbucks 1,532 23%

International Expansion Strategies

:

InternationalMarket: Product &Service

ExportingExporting 1990

Location

99

TurnkeyTurnkey Contractor Setup TurnkeyTurnkeyProjectProject

Contractor SetupTraining, Process

Operation ForeignClient

FDI

g

LicensingLicensing

Technology

Location

International Expansion StrategiesInternational Expansion Strategies

Franchising License

franchiser

Joint

Knowledge

Technology Ventures

Product

Partner Share

2

2

Wholly 100% ProtectTechnology yOwnedSubsidiaries

LocalCountry

SetupOperation

gy

Promote

International Expansion Strategies

Seattle +

S b k Starbuck StarbuckInJapanwithSASABY:Learnfromthepartner Producethenew

productandbecamepopular b k StarbuckInAsia: StarbuckInEurope :

+ StarbuckInMiddleEast :

ProblemsinInternationalMarkets

TypeofRiskininternationalMarket

StrategiesRisk fiveforceg ,, Supplier,

OperationRisk OperationRisk,,,

, Leadtime ,

PoliticalRisk Macropoliticalrisk ,

MicropoliticalriskMicropoliticalrisk

CountryRisk

Technological Risk - , ,

Environmental , Risk

,

ProblemsinInternationalMarkets

2000 Starbucks :

: 2003: 6

NGOs

:

Starbucks

Operationcost Operationcost

Future ProspectsFuture Prospects

OperationCost OperationCost Supplier

Starbucks

Political&SocialPerspectivesPolitical&SocialPerspectives

CSR(Corporate CSR(Corporate

SocialResponsibility)CSRPlatform WinWinSituation Recycle//

OperationCostOperationCost

s pplier supplier

, Leadtime , Leadtime

Starbucksclosing600storesintheUSStarbucksclosing600storesintheUS

www.business.com July www.business.com July 11, , 20082008

Starbuck 600 19%

6 6 16,2267,257 US. 1,867 7,102 licensepartner

cannibalization

Starbuck Starbuck

recession

Starbucks

Starbuck Location Location

Starbuck Supplier

Customerneed

Starbucks Starbucks

Starb cks Starbucks Starbuck

Starbucks

(Entrystrategy)

Exporting

Turnkeyprojects

Licensing Licensing Franchising

Jointventures

Whollyownedsubsidiaries

1. IndustryAnalysisFiveforcesmodel

1) Threatofsubstitutes) h f h d2) Threatofnewentrantsintheindustry

3) Bargainingpowerofsupplier4) Bargainingpowerofcustomers4) g g p5) Intensityofcompetition

I d t St t IndustryStructure

2 EnvironmentalAnalysis

2.EnvironmentalAnalysis Social

bar Starbuck

Greenteacoffee Political Political

Economic

Environment Law Law

Technology

Starbucks

Starbucks Starbucks

Starbucks 1%

Starbucks

Starbucks

16

Pricing Promotion

JoinPromotion Quality H C i (HumanConnection)

1. Espresso

M Mastrena

2010

2.

b k

3. Starbucks

b k d

4. Starbuckscard WiFi2

BrewedCoffee

dC ff

5. BrewedCoffee 1015

1

57 5 7 Brewed 30

Brewed (())

Blend PikePlaceRoast((PikePlace Seattle))((PikePlace Seattle))

Coffeeoftheday

6. CloverCoffeeMachine

Brewedtoorder

!!!!

TeamMember

NAME ID 4920224085

4920224090. 4920224092

4920224093. 4920224100

. 4920224107. 4920224117

4920224126 49 4 4920224134 4920224140 4920224140 4920224143