Starbucks : Product Objectives And Strategies Associated With Starbucks

Jerry Baldwin, Gordon Bowker, and Zev Siegl founded Starbucks in 1971 in Pike Place Market in Seattle, Washington. They were inspired to pursue this company by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans. Since then, Starbucks has grown into the largest coffee chain in the world, with over 23,000 locations worldwide.

In this Professional Assignment I am going to talk about Starbucks coffee it is famous for unique and roasted coffee and it is quiet expensive than others coffee but also it is top brand in the world .It strategy was to expand

Starbucks is no doubt a phenomenon in the United States, but the brand wants to expand globally. Opening chains in various global locations such as Japan, Vienna, England; Starbucks wants to reach out to the coffee loving fans everywhere. Nevertheless opening chains globally is not that simple. There are many uncontrollable factors Starbucks need to focus on to make sure they are making profit as well has abiding by the country’s laws and regulations. Going global takes a lot of market research to make sure that the brand will be successful even with uncontrollable factors. Controllable factors can be tailored to fit the needs of each country. Starbucks has to find the happy medium so they don’t lose their identity overseas.

Several key success factors exist for Starbucks, a leader in the coffee industry. They include

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.

I've chosen the Starbucks Corporation on which to do my case assignment for the session. I first became interested in Starbucks while working on a paper for a previous marketing class. I became intrigued at the entrepreneurial spirit that such a large corporation had managed to maintain throughout its massive expansion. Starbucks corporation, unlike many of its now-defunct rivals, has done an outstanding job since its meager beginnings in 1970 with the execution of its strategic process; resulting in it currently owning 40% of the specialty coffee market and boosting annual sales exceeding $7 billion according to Burt Helm. Historic successes and recent turmoil within the company, including a near 40% decline in 2007 in profits (Sullivan

This drives the demand of the product , shifting the demand curve to right. Buyers expectation strongly affects the consumption . Expectation of technology for a consumer , wifi, card, mobile , e-commerce adds up to the demand. With increase in technology by the company the demand increases leading the demand curve to move to right. (http://www.forbes.com/sites/rahimkanani/2012/05/24/chief-digital-officer-for-starbucks-on-technology-change-and-community/)

With the financial system in strife, the stock market place tanking, it is imperative to commence your day with an enjoyable cup of coffee to endure some these life challenges. Gratifying everyday moments is just one way that it appears that Starbucks words denotes that they are not retailing solely coffee. They declare to be offering the coffee experience. The coffee bars that promote specialty coffee likewise gives consumers a setting where they can be able to be themselves. Starbucks presents themselves as the third location between home-based and office, where one can exodus, contemplate, study, converse or listen. They have developed into one of the prevalent competitors in the coffee commerce and appears to be still exploring for possibilities to magnify themselves. From a Christian worldview Mark 6:39 states, “Then He commanded them to make them all sit down in groups on the green grass” (NKJ). Therefore, when situations seem impossible for an organization, it is possible when God is included in the plan.

Howard Schultz asked Bowker and Baldwin to allow him to partner with them. Although the pair was leery of him, and questioned his dedication, they eventually gave in. The two initially denied his request, but Schultz was able to convince Baldwin that he could do it. Baldwin agreed to hire Schultz. Schultz became the head of marketing and appointed the task of overseeing all of the retail stores in 1982. He quickly became knowledgeable about the day-to-day operations of Starbucks. His dedication and love for coffee was no longer in question. He brought new ideas to streamline the ordering process and make for a smoother in-store experience.

I. The company that I will be working on is Starbucks. The company's business is based on coffee. The core business is in the quick service food sector, with a coffeeshop focus. QSR Magazine ranks Starbucks as the 3rd-largest firm in the US in the industry, and the largest with a coffee focus. The company also has retail and institutional businesses, marketing coffee in a variety of formats both to consumers via grocery outlets and to hotels and other institutional buyers.

This Individual work is based on the case study “Starbucks: Back to Basics?” written by Sachin Govind. The case reviews the success story about the coffee chain and a brand which changed the Americans’ coffee and café culture. However, it also highlights that Starbucks had been facing some challenges as well as having difficulties inside the company. Furthermore, some analysts expect that the corporation eventually will destroy what they have built up and what have become to be known as their unique characteristics. Some analysts believe that Starbucks have lost focus and track of the the expectations of the market, which is reflected in dropping stock prices in particular, and in the fact that Starbucks struggles to retain the same

Starbucks originated in Seattle, USA in 1971, by three partners, who met while they were studying together at the university. In 1984, when the sales started to decrease, while the specialty coffee sales increased. In 1987, the original owners opted to sell the coffee shop to one of their former employees by the name of Howard Schultz, who rebranded his II Giomate Coffee by the name of Starbucks and started to expand very quickly. It opened its first store in Vancouver, BC at the Waterfront Station, and another one in Chicago, Illinois, US. By the year, 1989 Starbucks had increased its stores to 46 locations. By the time Starbucks appeared on the Stock Market in 1992, it had expanded to 140 outlets with revenue of US$73.5

Successful companies are companies that have a plan for where they are going, and where they want to be in the future. To successfully create this plan, companies need to examine themselves, along with their competitors, to see what areas need to be strengthened and what can be utilized to do so. Some of the main components of this analyzation are identifying what the major issues in the companies that are threats or are causing that weakness. They then need to create long term objectives, and quantify how to accomplish them-- whether they be financial or strategic. Starbucks as a company has three key issues: increased competition from new and/or expanding restaurants and coffee shops, they are less popular overseas, and there are many consumers who boycott Starbucks because it is such a mainstream prevalent brand.

Starbucks has been very successful in implementing the “Starbucks Experience” both in the United States and in Turkey. Inspired by his visit to Italy, Howard Schultz CEO, was charmed by the social glamour of drinking coffee by the cup. Schultz sough to differentiate Starbucks from the rest of specialty coffee stores and pitched his inspiration to the three original owners, Jerry Baldwin, Zev Siegel and Gordon Bowker. The owners of Starbucks were not fond of expanding the business to what they considered was restaurant business. As such, Schultz ventured on his own to launch his new idea of innovating coffee with success. In 1987, the owners folded their business pursuits with Starbucks and sold all assets and name brand to the visionary Schultz. Starbuck grew rapidly after Schultz purchased it, it went form 11 stores in 1987, to over 900 stores in 1996, and to 6,793 stores by 2007 in North American only. Starbucks Turkey opened in 2003. It was located in one of the busiest and prominent streets in Istanbul where the most affluent citizens roamed. Within five years they were the most rapidly expanding coffeehouse chain in Turkey. By 2008 there were 105 stores in 8 cities serving approximately 30,000 customers per week. Starbucks Turkey was successful due to its consumer, marketing and entry strategies for growth it implemented.

The Indian coffee is said to offer a subtle balance of refinement and stimulation. Just light and not too acidic, these coffees exude a distinct full-bodied taste and a fine bouquet. It has a rich cultural flavour too.