Founded in 1985 by Howard Schultz, Starbucks Corporation (NASDAQ:SBUX) currently operates in 75 countries according to its mission statement “to inspire and nurture human spirit – one person, one cup and one neighbourhood at a time”. Starbucks Corporation brand portfolio consists of Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and Ethos and it sells coffee, tea, other beverages, and a variety of food products (Annual Report, 2016).
There are two formats of Starbucks stores: company-operated and licensed stores. By the end of fiscal year of 2016, Starbucks had 12,711 (51%) company-operated stores and 12,374 (49%) licensed stores. In total, the company opened more than 3700 stores during the last two years (Annual Report, 2016). As of October 2016, Starbucks had approximately 254,000 employees worldwide, including 170,000 employees in the US.
In fiscal year 2016 Starbucks net revenues increased 11% to USD21.3 billion in fiscal 2016 compared to USD19.2 billion in fiscal 2015. Moreover, global comparable store sales grew 5% driven by a 4% increase in average ticket and a 1% increase in the number of transactions (Annual Report, 2016).
Starbucks business strategy is associated with providing customers a Starbucks Experience, i.e. a ‘third place’ experience away from work and home, where people can have quality time with friends or alone enjoying quality coffee, beverages and fresh food. Currently, the company is following international business expansion strategy with a particular focus on China and Asia Pacific market segment.
Starbucks is an acknowledged leader in the industry in terms of exploiting information technology and technological developments. The company has adapted mobile apps for the promotion of its brand and sales of products earlier than the competition. Starbucks app offers multiple features such as store locator, nutrition-based information and rewards program. Moreover, ‘MyStarbucks Signature’ initiative allows customers “to develop their own signature drinks (hot or cold coffee), name the drink and share the new flavour with the community” (Business Today. 2014, online).
Starbucks Corporation Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on Starbucks. Moreover, the report contains analyses of Starbucks’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.
1. Executive Summary
2. Business Strategy
4. Organizational Structure
5. Organizational Culture
6. SWOT Analysis
7. PESTEL Analysis
7.1 Political Factors
7.2 Economic Factors
7.3 Social Factors
7.4 Technological Factors
7.5 Environmental Factors
7.6 Legal Factors
8. Marketing Strategy
8.1 7Ps of Marketing
8.2 Segmentation, Targeting & Positioning
8.3 Marketing Communication Mix
8.3.2 Sales Promotion
8.3.3 Events & Experiences
8.3.4 Public Relations
8.3.5 Direct Marketing
8.3.6 Personal Selling
9. Porter’s Five Forces Analysis
10. Value-Chain Analysis
10.1 Primary Activities
10.1.1 Inbound Logistics
10.1.3 Outbound Logistics
10.1.4 Marketing and Sales
10.2 Support Activities
10.2.2 Human Resource Management
10.2.3 Technology Development
11. McKinsey 7S Framework
12. Corporate Social Responsibility (CSR)
12.1 CSR Programs and Initiatives
12.2 CSR Criticism
List of Figures
Figure 1 Starbucks Organizational Structure
Figure 2 Starbucks Corporation returns to shareholders
Figure 3 The amount of political lobbying by Starbucks Corporation as an important element of political factors
Figure 4 Starbucks Porter’s Five Forces
Figure 5 Market share of the leading coffee chains in the United States in 2016
Figure 6 Starbucks Value chain analysis
Figure 7 Starbucks McKinsey 7S Model
Figure 8 Average water use per square foot/store/month U.S. and Canada company-operated stores
List of Tables
Table 1 Brand-based divisions within Starbucks organizational structure
Table 2 Starbucks SWOT analysis
Table 3 Starbucks segmentation, targeting and positioning
Table 4 Starbucks operating segments and shares of revenue
Dunkin Brands Inc.
Seattle’s Best Coffee
Shanghai Husi Food Co.
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- Published: April 2017
- 10735 Words
- 44 Pages