starbucks case study

SEC 10- K Paper Acct 221 Lakesha Craft SEC 10-K Paper The first Starbucks coffee shop opened in 1971 in Seattle Washington. The coffee shop was founded by three partners. Jerry Baldwin and Zev Siegl were teachers and Gordon Bowker was a writer. The idea to have a coffee shop came about when a close friend was selling high quality coffee beans and equipment. After a matter of time, the partners decided to purchase the product from the grower. The coffee shop was named after the Nantucket Whaleship first mate from the novel Moby-Dick.

Starbucks suppliers have high bargaining power due to the fact that the demand for coffee is high in global level and coffee beans can be produced only in certain geographical areas.

Ratio Comparisons Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

pursuing a globalization strategy? II.     Analysis of the Problem: A.     Company Background and History: 1.     Founders. a.     Starbucks began in 1971 when three scholars-English teacher Jerry Baldwin-history teacher Zev Siegel, and writer Gordon Bowker- opened a store called Starbucks Coffee, Tea and Spice in the touristy Pikes Place Market in Seattle.

Michael Porter five forces model is used to analyze an industrial environment and then to develop appropriate strategy for success for the product of industry ( Porter, ME, 1998) When the model was applied to Starbucks to analyze the competitive environment, the following result was achieved. Industrial Rivalry : The industrial rivalry in

History                 Starbucks is a major American company that was founded in 1971 by three college friends in Seattle, Washington.  Jerry Baldwin, Zev Siegl, and Gordon Bowker at one time were all of different paths until they learned coffee roasting techniques from coffee entrepreneur, Alfred Peet (Starbucks Timeline, 2016).  Alfred

Eventually in 1984, the owners of Starbucks, purchased Peet 's. Even though the price of coffee was decreasing, by 1986 the company operated six stores in Seattle and had really just began to sell espresso coffee (Starbucks Timeline, 2016). A year later in 1987, the original owners sold the Starbucks chain to former employee Howard Schultz. The next step for Howard was to rebrand his Il Giornale coffee outlets as Starbucks. Later in the same year,

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

December 3, 2012 December 3, 2012 Andrei Gavriluta Strategic management Birkbeck, University of London Andrei Gavriluta Strategic management Birkbeck, University of London Starbucks in the us: too much coffee spilling all over? Coursework - Essay Starbucks in the us: too much coffee spilling all over? Coursework - Essay Table of Contents I. SUMMARY1 II. CASE STUDY ANALYSIS 1 i. STRATEGIC POSITIONING AND MARKETING MIX1 ii. PORTER’S FIVE FORCES2 iii. SWOT ANALYSIS3 iv. EXTERNAL ENVIRONMENTAL FORCES – PEST ANALYSIS3 III. CONCLUSIONS4 IV. REFERENCES5 I. II. SUMMARY Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it

Schultz joined the company 1982 when Starbucks was still only a small, but highly respected roaster and retailer of whole bean and ground coffee. A business trip to Italy opened Schultz’s eyes to the rich tradition and popularity of the espresso bar. Espresso drink became the foundation of

Based on the Five Industry Forces, Starbucks’ industry has a high attractiveness due to the low threats of character rivalry, new entrants, and bargaining power of buyers. Starbucks is able to determine the strengths and weaknesses in their position in the industry. With this knowledge, they are able to implement strategies that minimize their weaknesses. Starbucks handled their high threat of substitutes by expanding their product range which gave customers more variety to choose from. Starbucks’ international program with benefits served as an incentive for their suppliers to continue providing them with high quality coffee beans.

Starbucks Case Study Throughout the United States and Asia, Starbucks is renounced for their expertly crafted coffee, so much so that an immensely large portion of the nation at least recognizes the logo and the name. This success to this day keeps producing higher returns for investors especially over this last third quarter of 2016. The third quarter had set many new records with Starbucks for both the American markets as well as the Asian markets causing a big boom for the company and sparking excitement within the investors. This record increase “was primarily driven by the opening of 1,876 net new stores over the past 12 months” (Doraisamy 2016). As far as the growth due to the other stores open for more than 13 months, those stores had also seen a hefty revenue increase due to the increased memberships for Starbucks Rewards which “increased 18% year-over-year to 12.3 million active loyalty members in the U.S.” (Doraisamy 2016). This increase in memberships had proven strong towards the likelihood that customers will return at a higher frequency. Recently there has been an increase of 9% profitability in the third quarter which has noticeably been due to the consolidation of their operating margins “due to sales leverage and lower commodity costs” (Doraisamy 2016). This recent success throughout America and Asia along with the mass quantity of stores being opened, has been the main direct cause that lead to the major EPS jump this third quarter. Among the astounding

STARBUCKS CASE Introduction 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.

Introduction This is a proposal based on the case study “Starbucks – going global fast” (Cateora and Graham, 2007), further research has been undertaken and analysis and recommendation will be based on these sources of information.

Threat 1. Imitation by competitors Starbucks' success has lead to the market entry of many competitors and copycat brands that could pose potential threats. Therefore, many competitors felt resentment of the Starbucks’ success and they may imitate the Starbucks’ business system to enter the India market.