Feasibility Study
Establishment of Starbuck Coffeehouses in Afghanistan
Team One
Hasibullah Dehzad
Sahar Sulaimankhail
Fariha Baheer
Hamidullah Rafiyi
MGT 540, Section 2
Major Assignment
Professor Christopher Henderson
December 19, 2014
Contents
Executive Summery 3
Introduction 4
1 Research Methodology 5
1.1 Statement of the Problem and Significance of the Study 5
1.2 Scope of the study 5
1.3 Objectives of the study 5
1.4 Data collection 5
1.5 Sample 5
1.6 Data Analysis 6
2 Risk Factors 7
2.1 Primary Risk Factors 7
3 Market Analysis of Starbuck Coffee Shops 8
3.1 Coffee Shops Demand Analysis 8
3.2 SWOT Analysis 8
3.2.1 Strength 8
3.2.2 Weaknesses 8
3.2.3 Opportunities 9
3.2.4 Threats 9
3.3 Market Analysis Summary 9
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In terms of the legal formation of such a company in Afghanistan, Starbucks have the options to:
Register the company in Afghanistan and establish its branches in big cities of Afghanistan;
Give the franchise to one of local companies who have the ability and capacity to handle the works property.
In this report the team has worked on the risk factors, market analysis, SWOT analysis, and financial feasibility for establishing Starbucks coffeehouses in Afghanistan. As per the market analysis which has been conducted, it is clear that there is demand for coffee shops in the big cities; therefore, we tried to assess the advantages and disadvantages of staring the business in big cities of Afghanistan.
1 Research Methodology
1.1 Statement of the Problem and Significance of the Study
An investigation commissioned by Starbucks Corporation into the possibility of establishing Starbucks about establishing coffeehouses in Afghanistan. 1.2 Scope of the study
The scope of the study is limited to Afghanistan big cities more specific selective target locations.
1.3 Objectives of the study
1. To assess the profitability and feasibility of establishing Starbucks coffeehouses in Afghanistan
2. To assess the demand and ability of people for buying Starbucks products
1.4 Data collection
The data required for the study were collected from both primary and secondary sources. The primary data were collected from the
Starbucks is one of the leaders in coffee industry. Starbucks has entered into many new markets and today it has more than 16,000 outlets across the globe (Johnson, Scholes and Whittington 2011). Due to unlimited business opportunities, Starbucks Corp has set strategies to enter India as it is next major hub for development in near future. Previously Starbucks has gained wide success in China and Japan due to high consumption of coffee and tea. Since its inception, Starbucks has tapped the major markets across the world, India was left untapped. In India, Starbucks has setup alliances with TATA Global Beverages which is a unit of TATA Group of Companies. Starbucks along with TATA has started with an investment of $80 million and plans to open 50 coffee shops in a year. Currently few coffee shops has been setup by Starbucks, however in near future, it is expected that the company will achieve its target in capturing Indian market (Lamb2009). Thus, besides sourcing coffee beans from TATA, Starbucks can now explore more Asian markets (Hitt, Ireland and Hoskisson 2012).
(A systematic analysis of primary data to identify relationships between patterns, trends, errors and anomalies is to be included. Secondary data should be included where appropriate and its source clearly stated. Analysis and comparison of both types of data should also be included.)
National governments in coffee growing countries have a major investment in Starbucks. Some of these countries include Costa Rica, Guatemala, Kenya, Nicaragua, and Tanzania. Starbucks strive to be responsible for its
starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One
Starbucks identified the opportunity in Turkey, through its partnership with their regional franchise holder, the Al Shaya Group (“Starbucks Turkey,” pg. 12). Despite the many challenges facing them, the Al Shaya Group was committed to bringing the “Starbucks Experience’ to Turkey, and the company found success by embarking upon an aggressive
2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.
Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.
People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.
Former Starbucks Executive Scott Bedbury once said “Brands need to communicate that they are along for the ride. They are made of flesh and emotion. That they are made possible by people” (10 Quotes from Starbucks Executives, 2010, para. 6). Starbucks’ beliefs in customer service, community solitude, and a strong business core stretch far behind just a belief in a quality caffeinated product. “We make sure everything we do honors that connection – from our commitment to the highest quality coffee in the world, to the way we engage with our customers and communities to do business responsibly” (About Us, 2011, para. 4). Thus, this commitment is the motivation behind Marketing Team A’s proposed
In this paper, I will talk about Starbucks Company. I will define the influence of the vision, and mission of the company and primary stakeholders along with their overall success. An examination will be conducted to categorize five forces of struggle and their effect on the corporation. I will carry out a SWOT analysis to determine the opportunities, threats, strengths, and weaknesses. Founded on the SWOT analysis, a technique of opportunities and advantages will be exploited while threats and weaknesses will be diminished. Several types and levels of techniques will be talked over to operate the profitability and competitiveness. I will outline a plan of communication to make approaches known to all investors. Two corporate authorities will be designated to assess the efficiency of the regulating managers. I will also assess the effectiveness of management within the Company and come up with sanctions for upgrading.
Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?
Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty
In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.
At the basic level, coffee is steeped in Turkey’s culture and lifestyle as well as enjoying the drink among family and friends in an environment conducive to socializing. This is also the fundamental level of Starbucks’ business model of fine quality coffee and stores with welcoming atmospheres designed to appeal to friendly gatherings. Therefore, Tukey and Starbucks seem to be a natural fit in terms of the market. By engaging in licensing, which they had done successfully in other countries, Starbucks was even better able to tap into local knowledge and secure desirable retail locations.
Coming up with development goals to, facilitate growth. Growth is an important aspect that determines the progress of an organization and how completive it should be.