Strategic Management at Starbucks

14676 WordsMay 18, 201259 Pages
Strategic Management Project [pic] -2012- TABLE OF CONTENTS CHAPTER 1 3 Introduction 3 CHAPTER 2 4 General Description of the Company 4 2.1. Strategic Group of the Company and the Dynamics of the Industry Structure 5 2.2. Starbucks in Romania - Market Environment 6 CHAPTER 3 8 Organizational Purpose 8 3.1. Mission and Vision 8 3.2. Values and Objectives 9 CHAPTER 4 9 Diagnosing the Strategic Capabilities within the Company 9 4.1. SWOT Analysis 10 4.2. Starbucks’ Corporate Capabilities 11 CHAPTER 5 12 Limitations of Starbucks Strategic Management and Capabilities 12 CHAPTER 6 14 Strategy Development 14 6.1. Five-Forces Model 15…show more content…
Changing the perception of the customers was done by changing the entire culture of enjoying coffee. In addition to selling a variety of rich-brewed coffee beverages, pastries and coffee related equipment and accessories in company operated stores, Starbucks offers whole bean coffees through a specialty sales group and supermarkets. Through joint venture partnerships, Starbucks also sells products including a variety of bottled Frappuccinos, ice creams, and premium teas. (Starbucks, 2011) Although Starbucks has dominated the American coffee market for many years, the latest global economic downturn affected the industry. As a result of the current global recession and a 33% reduced coffee consumption rate, Starbucks faces market stagnation and as a consequence of this aspect, the company was forced to close a considerable number of stores. There were closed over 500 stores in America. While the actual price of coffee beans has fallen throughout the global market, refining and transporting costs registered considerable increases. In the past ten years, natural gas and electricity prices has nearly doubled and negatively affected the profit margins of Starbucks. In addition to that, new product development from competitors may require Starbucks to introduce new product lines and services for other segments within the beverage and coffee equipment industry. (MSNBC, 2008) Being the first
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