The Value Proposition Of Starbuck 's And Smoothie King Essay

II. Business Model and Strategic Plan Part I: Existing Business or New Business Division; Vision, Mission, and Value Proposition ………………………………6

Topic: An examination into the rise and fall of Starbucks Coffee Company and its relationship to certain microeconomic principles.

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 positions itself as a place college students can hang out, study, write term papers and meet people. A Starbucks appeal to this consumer directly through introducing technology as soon as it comes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year (O’ Farrell).” However, the majority of the advertising is catered to Adults around the ages of 25 to 40. Adults seem to prefer a pick me up first thing in the morning on their way to work. Most Starbucks today have a drive thru to make it faster to grab and go.

In this assignment, a savvy financial analyst researching companies in which to invest a U.S. publically-traded company that would be a good investment was chosen. After a lengthy search, a company that my family is unduly familiar with, Starbucks, was chosen and in the following pages a financial analysis will be described.

Jamba Juice is a smoothie retailer in the United States in the restaurant industry. Jamba Juice offers 100% fruit smoothie and juice with healthy snacks. This paper will explain the strategic issues faced by Jamba Juice, and the strategy used to be successful. Jamba Juice has maintained financial discipline, cost management, and improvements that are the reason sales are increasing. Jamba Juice strives to follow their mission and vision statement, and markets aggressively. Over the next five years, the market for smoothies is expected to increase by 10-15%. (Brixler, Brian) Consumers are seeking healthier food and beverage options for a meal. Smoothies offer a healthy option instead of drinking soda.

Business Analysis of Outback Steakhouse This essay answers the following questions. 1) What are the standout business and economic characteristics of the restaurant industry?

Coca-Cola was invented by John Pemberton the Coca-Cola Company began in 1886. With more than 1.9 billion consumers a day, in more than 200 countries, Coca-Cola is dedicated to being the world’s largest beverage company by maintaining and gaining customers. Customer preference is a core value to coke. Coke has dedicated itself to meet the thirst needs of every customer. They engage with their customers at home, restaurants, sporting events. Almost everywhere customers go, they can find a coke product. They build their top line growth and capital efficiency through investment in FIFA World Cup, “Open Happiness” global campaign, and have many worldwide partners, increasing their business nearly 5% every year by creating a diverse customer base.

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

Critically evaluate the mission, vision and values of a company that you are familiar with and propose alternative formulations of same

Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand

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.

Starbuck’s missions, values, and principles are directly related to their generic strategy of broad differentiation. Each one of these elements explains how Starbucks is just not offering just coffee, but an experience. In the stores, they complement this by bringing several items to the table (product variety). In addition, Starbucks has positioned themselves in the focus differentiation and treacherously close to best supply category. Starbucks has used the Verismo to position themselves back into the focus section because it is a specialty item that Starbucks aficionados might want in their home. However, Starbucks is going against the grain with the Via products because of its low costs. This is risky because people buy Starbuck for the experience and the high quality coffee, not because it is cheap.

The value chain analysis (shown in appendix) was also generated by Michael Porter. This model is referred to “identifying ways to increase the efficiency of the chain” (Investopedia, n.d.). Furthermore, the overall objective is to produce maximum value with minimum total cost and establish a competitive advantage.

Krispy Kreme Doughnuts was a successful privately owned business since 1937. In 1982 a group of franchises bought back the company from Beatrice Foods for $24 million, and reintroduced the old recipe of doughnuts and their “hot doughnuts now” system. In 1998 Scott Livengood became Krispy Kreme’s new