A Case Study Of Starbucks

1. In the beginning, how was Starbucks different from other coffee options for coffee drinkers in the United States? What activities and assets did Starbucks leverage to differentiate itself from competitors?

Starbucks Corporation purchases and roasts high-quality coffees, along with beverages and fresh food items, throughout all company-operated stores. The consolidated financial statements reflect the financial position and operating results of Starbucks Corporation. Ratio Analysis was used to analyze the performance of Starbucks using the financial ratios of liquidity, solvency, and profitability. Calculations and amounts were provided in the excel spreadsheet labeled (Financial Ratios). All data provided were conducted for the balance sheet and income statement accounts over the fiscal years 2015 and 2014. Starbucks Corporations ' fiscal years’ end on the Sunday closest to September 30 (sec.gov).

Starbucks was founded in 1971. Gerald Baldwin, Gordon Bowker and Ziev siegl start star bucks journey with a small coffee shop in Seattle. Starbucks has become a cultural phenomenon through expand thousands of coffee houses across the North America and around the world. According to the market research Star Bucks start losing grip on customer satisfaction. Also speed of service is specific problem. For this reason, Starbucks management is planning to invest 40 million companywide it will help to increase the number of employees in each store. But, Starbucks management is unclear about impact on revenues.

The company many sales drink, Food and Nutrition. Drink comprises of the finest coffee from best beans procured all around the world and various other products. They also serve food which is good from the customer’s nutrition point of view. They also serve various beverages cold drink, brewed coffee etc. They not only serve food with nutritional value but also salads, sandwiches etc.

a) The nature of Starbucks’ business is to generate income based on operating activities. When referencing the Statement of Cash Flows and looking at their operating activities, you can see that Starbucks generates $2,908.3M in net cash provided by operating activities. Investment is a significant item in this statement as well. The company spent $785.9M in investments in the year ending September 29th, 2013. Strong investment activities show that Starbucks is investing through buying and selling (Sales, maturities, and calls of investments $1,040.2M) and using their spare cash to invigorate future growth and fund future obligations.

The above ideas on how to address the opportunities in the Starbucks case are prioritized from highest to lowest ideas. The criteria used was looking at solving the key gaps, providing for long term sustainability, positively impacting the company’s profitability, and cost of solution. The top three will be explored in further detail below.

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

The objective of this case study is to analyze why Starbucks was not meeting expectations in terms of customer satisfaction thereby losing customer loyalty. Whether or not to invest millions of dollars ($ 40 million) in each store to enhance the labor. How will it impact the sales and profitability if invested? Product mix and marketing approach will also be recommended in this paper.

There are several reasons why business is so good at Starbucks. The first reason is that it is a place for everyone, and by everyone I mean that one does not have to like coffee to go there. They have plenty of more options onfrom the menu. Second, the service is really good and fast for those who are in a hurry. Starbucks had a strong year in financial performance in Q3 and had demonstrated the devotion to delivering excellent economic and managing results while providing prosperity to the company. The growth was extremely influenced by the establishment ofas a Starbucks branch in Japan, a 7% increase in international store revenue, and installation

Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

This paper will explore the science of Managerial Economics, the cost effective management of scarce resources, through an exploration of the Starbucks Company. This will include an assessment of relevant market forces, market structure and the economic theories that guide business decisions for this company.

Starbuck’s strategy focused on three components; high-quality coffee, intimate service, and ambient atmosphere. Starbucks worked closely with growers in Africa, South and Central America, and Asia-Pacific regions to insure the quality of its product. Starbucks called all employees' "partners" and worked hard to train them with the skills necessary to best serve the customer. The atmosphere at Starbucks was crafted after the European-style espresso bar. The company goal was to create ambience through the Starbucks "experience" and by making the area comfortable, yet upscale.

1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

The case happened back in the 90’s where a lot of coffee shop is being operated in the business industry; one of this is the Starbucks a very well-known coffee shop nowadays. The Starbucks coffee maintained its clients or customers due of the new technique in marketing mix and to evaluate the kind of coffee and tea they were offered by the customers. The management also offered a promotional campaign by the use of advertisement in different media such as on television, radio, and printed media to remember the name of Starbucks. And now the said store or coffee shop has been created his own name here in the Philippines. (Source: Sunday Inquirer

The cause of this case study is to evaluate and recognize Starbucks growth in the past decades. Starbucks was established in 1971. The industry for coffee at the time was in decline for almost a decade. The consumption of coffee back then was mostly at home or “Away from home” either with a meal at dinner or restaurant. In larger cities like New York or San Francisco they have specialty coffee roasters for example Peet’s. The main goal of Schultz was aiming with that mentality to roast and vend great coffee (CRAIG, BUSSE, BROWN, “Aplia” Kellogg 1). By 1982 they had five retail outlets that served coffee beans and supplies for home but at the time they weren’t served prepared. As the growth of Starbucks is