Starbucks Case Study : Starbucks Inc.

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

Starbucks has always taken exceptional care in keeping its brand value.  In fact, Starbucks prides itself in its brand, particularly the power it has to keep its customer base strong. Before analyzing this loyal customer base it is best to consider the particular characteristics of the brand that has led to Starbucks having such devoted patrons.

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 from 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 is expanding their international retail presence, primarily through company-operated retail stores. The company has recently moved into China as part of its plan to operate 500 stores in both Asia and Europe. In 1998, Starbucks acquired a London-based Seattle Coffee Company. This gave the company an immediate presence in the U.K. and laid a foundation for future expansion in the European market. Starbucks has been involved with overseas expansion along the Pacific Rim markets such as Japan, Hawaii, Singapore, New Zealand, Philippines, Korea, China, Hong Kong, Malaysia, Thailand and Taiwan. Starbucks expects non-U.S outlets will eventually outnumber domestic stores. Starbucks is positioning itself as a company independent of domestic growth constraints as evidenced by it becoming one of seven NASDAQ stocks listed on the Hong Kong stock market. The Wall Street Journal quoted company Chairman Howard Schultz as saying, "We are no longer building an American company. We are building an international one that is as relevant in Hong Kong as it is in Seattle" (Wall Street Journal, 2008). To develop a successful presence in any of these markets Starbucks must understand the environmental influences to the companies business. Some of the major factors that affect business the foreign markets are technology,

Cognition gives the companies information on how consumers respond to different marketing stimuli they face for the products used. It has to do with customer’s thinking and how do they behave toward a particular product. To be more specific and also reading the book “cognition refers to the mental structures and processes involved in thinking, understanding, and interpreting stimuli and events.” (Peter & Olson, pg. 21)

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.

Starbucks Corporation forms licensing agreements with the majority of their foreign retail stores to collaborate and develop international partnerships with brands that have a solid position in the overseas market. Starbucks Corporation owns 698 company-operated stores and 1743 licensed stores in 39 countries in Europe, the Middle East, and Africa (EMEA) regions. In the China/Asia Pacific (CAP) regions, Starbucks spans across 15 countries consisting of 2542 company-operated stores and 3201 licensed stores. China alone has 2000 stores and Starbucks projects a growth of 500 additional retail stores per year over the next five years. The acquisition of Teavana Holding, Inc. in 2012 has become a successful and prosperous venture capital investment, therefore Starbucks strategy is to extend the specialty Teavana tea brand into Europe and China/Asia Pacific markets with the hopes of driving revenue growth. Starbucks’ plans to enter their most intimidating market, Italy in 2017. Will the Italian coffee market be a challenge for Starbucks Corporation or prove a positive economic venture for the company?

Has Starbucks has done well in Turkey? What are some of the common growth drivers in terms of consumer characteristics, market characteristics, and entry strategies across USA and Turkey that might account for Starbucks’ success?

a. Starbucks Corporation makes money in a few different ways, it’s highest revenue source are through the company-operated stores, here they sell things like different coffee brews, teas and pastries. Starbucks’ other revenue sources include product sales to licensed stores, this includes royalties and other fees paid to Starbucks for using it’s brand. Another source of revenue is consumer packed goods (CPG), food service and other, threw CPG, food service and other, Starbucks sells already packaged goods like coffee and tea to other retail stores like grocery stores, gas stations, warehouses, etc. Starbucks also holds short and long-term investments, which primarily consist of

In assessing Starbucks Social responsibility strategy, one would have to look at certain key elements of the strategy and what makes it a good strategy, a great strategy or even a poor strategy. One would have to ask question such as;

- An unusual coffee encounter – 3 3 3 3 4 4 4 5 6 6 6 7 8 9 9 10 11 12 12 13 17 17 18 19 19 20 21 23 23 25 26 27 28

This paper will examine Starbucks, Inc. CSR and sustainability practices from the viewpoint of a potential socially responsible investor performing due diligence. Two indices will be used to compare and contrast the company 's CSR report which measure the CSR practices of corporations; also, the usefulness of these two indices for research purposes will be evaluated, critiquing the credibility and limitations of each index. A report will be formed addressing Starbuck’s CSR performance and strategies based on the analysis.

Starbucks is one of the leading coffee retailers in the world; according to their company profile they are operating nearly 18,000 retail stores in 60 countries. They serve millions of customers daily; our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. (STARBUCKS COFFEE COMPANY, 2012) Starbucks has become much more than just a place to get coffee, it has become a brand.

1- I think the most important management skills for Schultz to have are the conceptual skills. Since Schultz is the chairman of Starbucks, which means he is the top manager of the company, the conceptual skills are the most important for him to have. Mostly because conceptual skills help him see the organization as a whole. It helps the manager understand the relationship among the various subunits, and visualize how the organization fits into its broader environment. In fact the conceptual skills are defined as the ability to think and to conceptualize about abstract and complex situations. But as we can see in the case Schultz proved he had good conceptual skills when he decided to open his own espresso chain after

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