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Starbuck

Starbucks is an American coffee company and coffeehouse chain. It has over 182,000 employees operating more than 19,000 locations across 62 countries. Starbucks focuses on ethical sourcing and providing consistently high-quality coffee, tea and food products. It has experienced rapid domestic and international expansion since the 1980s. Starbucks utilizes a strategy of rapid store expansion, extensive employee training, and creating a comfortable store ambience. Though it faces threats from competitors and economic downturns, Starbucks remains the leading global specialty coffee retailer due to its strong brand, consistent quality, and loyal customer base.

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295 views

Starbuck

Starbucks is an American coffee company and coffeehouse chain. It has over 182,000 employees operating more than 19,000 locations across 62 countries. Starbucks focuses on ethical sourcing and providing consistently high-quality coffee, tea and food products. It has experienced rapid domestic and international expansion since the 1980s. Starbucks utilizes a strategy of rapid store expansion, extensive employee training, and creating a comfortable store ambience. Though it faces threats from competitors and economic downturns, Starbucks remains the leading global specialty coffee retailer due to its strong brand, consistent quality, and loyal customer base.

Uploaded by

PrachiJain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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STARBUCKS STRATEGY

Outline

Introduction to Starbucks
Company Profile
Timeline
Starbuck Strategy
7S Model
SWOT
Wrap Up

Introduction

Starbucks Corporation It is an American company


founded in 1971 Seattle Washington, is a premier
roaster, marketer and retailer of specialty coffee
around the world.
182,000 employees across 19,767 Companies
operated & licensed stores in 62 Countries.
President and CEO - Howard Schultz.
Places high value on ethical behaviour.
Their Product mix includes roasted &handcrafted
high quality/premium price coffees , tea , a variety of
fresh food items & other beverages.

Company Profile

Starbuckss logo is inspired by the sea featuring a twin-tailed


siren from Greek mythology.
Our Coffee: Believes in serving the best coffee possible - goal
is to grow our coffee under the highest standards of quality
using ethical sourcing practices- our coffee buyers personally
travel to coffee farms in Latin America, Africa and Asia to
select the highest quality Arabica beans.
Our Stores: Perfect place for meeting friends and family or
enjoying a quiet moment alone with a book

Contd
Our Partners: Our employees, who we call partners, are at the
heart of the Starbucks Experience- our store partners are
committed to coffee knowledge, product expertise and customer
service.
Our Products:
1) Coffee: More than 30 blends and single-origin premium Arabica
coffees.
2) Handcrafted beverages: Fresh-brewed coffee, hot and iced
espresso beverages, coffee and non-coffee blended beverages,
Vivanno smoothies and Tazo teas.
3) Merchandise: Coffee and tea brewing equipment, mugs and
accessories, packaged goods, music, books and gift items.
4) Fresh Food: Baked-pastries, sandwiches, salad, oatmeal, fruitcups.

Timeline

1971- Starbucks founded by Jerry Baldwin, Zev Siegel and


Gordon Bowker as a single store in Seattles Pike Place
Market.
1980 - Starbucks had become the largest roaster of coffee in
Washington.
1982- Schultz was hired as the marketing head at Star bucks.
1983- While travelling in Italy, Schultz experiences Italian
Coffee bars and inspires him.
1985- Schultz leaves Starbucks to open II Giornale, a company
serving espresso drinks using Starbucks coffee beans.

Contd

1987- Il Giornale acquired Starbucks and changed the


name into Starbucks Corporation.
1992- Starbucks Company goes public.
1993- Opens first roasting plant in Washington.
1999 Starbucks acquired Tazo Tea.
2000 Acquired Hear Music, a San Francisco-based
company.
2003 Starbucks acquired Seattles Best Coffee
2011- Celebrates 40th anniversary

Starbuck strategy
Rapid store expansion strategy:

Domestic store expansion

International store expansion

Employee Training and Recognition

Store ambience

Real Estate, Store Design, Planning, and


construction.

7S MODEL
Strategy
Structure
Staffing
System
Skills
Style
Shared Values

Strengths

Leading retailer and roaster for brand specialty coffee


in the world
Known for providing superior products and services
Number 7 on Fortune Magazine's "100 Best
Consistent high quality of service
Limited number of strong competitors
High market share and market growth

Weaknesses

High pricing because of the quality ingredients used


Starbucks refuses to guarantee that milk, beverages,
chocolate, ice cream, and baked goods sold in the companys
stores are free of genetically-modified ingredients
Strong presence in the U.S. - more than three quarters of its
cafes located in the domestic market
In order to reduce business risk, expansion is needed

Opportunities
High growth of economy and market in Indonesia,
especially in urban areas
Could diverse their product not only in coffee
The potential employees are educated people which make
it easier to train them
Strong financial support

Threats

Competitors and copycat brands could pose potential threats


Sentimental issue to the bad effect of coffee from society
Global financial crisis - makes people tend not to spend
Threats of substitute products and services such as colas,
teas or juices that are sold in retails
Exposed to rises in the cost of coffee and dairy products

Competition

Mission Statement
October 2008 - Present
We inspire and nurture the human spirit- one
person ,one cup, and one neighbourhood at a
time

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