INSTRUCTOR: GROUP MEMBERS: Nguyen Binh Ly Phuong

Quach Thanh Nguyen Uyen

Min Carter, Ph.D. Le Anh
Our Mission: to inspire and nurture the human spirit
– one person, one cup and one neighborhood at a time.
TV ADVERTISING
CAMPAIN
1. Political issues

Issues:
Taxation Policy
Trade regulations
Governmental Stability
Unemployment Policy
Laws
…

Example: Hong Kong,

Thailand, Africa…
 2. Economical issues

Inflation rate - 10%

Growth in spending power – Average Income

Rate of people in a pensionable age

Boom
3. SOCIAL ISSUES
Age distribution

Education levels

Income level

Consumerism

Population growth

Life expectancies

Social and cultural changes affecting

consumers’ buying habits/trends

Expectation of society from the

business
4.
TECHNOLOGICAL

Technology has been

played a vital role in
Starbucks

 Example:
 Starbucks card
Nothing is more important
than espresso machines
designed our custom.

We have designed
special types of
bottles.
5. Environmental issues

 Recycling: Recycling in Stores, Reusable

cups, Greener Cups. Composting of coffee
ground.

 Energy: reduce energy consumption by

25% by 2010. Purchase renewable
energy equivalent to 50% of the
electricity used by 2010

 Water: continue to include water-saving

technology in our equipment
specifications and going to reduce water
consumption by 25% by 2015
Environmental issues (2)

 Green Building: create a system to

certify retail stores and store
prototypes. Beginning in December
2010, build all new, company-owned
stores to achieve LEED® certification

 Climate Change: implementing a climate

change strategy since 2004, focusing on
renewable energy, energy conservation,
and collaboration and advocacy. ensure
a long-term supply of high-quality
coffee through responsible coffee
purchasing practices and by investing in
farmers and their communities.

Source: Starbucks USA Homepage

 6. Legal issues

 Employment law: working time, age, minimum wage

rate, etc.
 Health and safety regulations
- Ex: Starbucks spend more on health insurance — $300 million
surmount its coffee bill

 Consumer protection:
- Ex: Starbucks pay $225.000 to settle Consumer Protection
case for gift card violations. (Santa Rosa, CA , 2009)
- Ex: Stored-valued card: this is a prepaid card offer by
Starbucks.
NAME AND LOGO OF STARBUCKS GET
INSPIRATION FROM:

CARTOON NOVEL

COMIC NOTHING
NOVEL
Porter’s Five Forces Competitive
Analysis
Porter’s five forces
competitive analysis
• Suppliers: Moderate
Starbucks has various options
when choosing their supplier.

 Starbucks decided to change

its suppliers because of the
increasing of price.

 Disaster or issues associated

with coffee producers being
treated unfairly by multinational
companies
• Buyers power: High

Starbucks has loyal

customers that willing to
come to buy.

Starbucks is not the only

one choice of the
customers.

Starbucks customers
possess large amount of
bargaining power
• New entrants: Moderate

Themarket is highly saturated and require substantial

amount of financial resources.

Little product differentiation.

• Rivalry: High

 Rivalry among existing

competitors is high.

 Many people started to look

for more healthy and
fresh juice instead of coffee.

 The competitors don’t have

much different from their
product.
• Substitutes: High

There are many kind of substitutes products, such as tea,

soft drinks, juice, etc.
VALUE CHAIN ANALYSIS
 PRIMARY ACTIVITIES
1
INBOUND LOGISTICS
• Coffee beans producers mainly
in African 2 OPERATIONS
• Organising the supply chain
management
• Direct Operations
OUTBOND LOGISTIC
3 • License

Selling its products through its

stores without any intermediates 4
MARKETING & SALES

• Word-of-mouth
5 • Sampling Of New Products
SERVICE

Service on stores
 Firm HRM
Infrastructure
management, • Most valuable
planning, resource
finance,
accounting, legal • A wide range of
support and training and
government SUPPOR development
programs
relations
T

Procurement Technology
coffee beans and raw cost-saving purposes
food items, as well as
fixed assets such as
buildings, machinery etc.
STORY OF TABLES
 Strengths Weaknesses

Opportunities Threats
 SWOT ANALYSIS
Strengths
- High quality
- Strong brand name
- Starbucks experience
- Largest coffeehouse chain in the world
- High market share and market growth
Opportunities
-Increase product offerings
-To extend supplier network.
- Expansion to emerging economies
Weaknesses
-High price
- Business profits are highly dependent on
coffee product
- Too focus on US domestic market.
Threats
- Rising prices of coffee beans and dairy
products
- Frequent changes in the market trends
- Numbers of competitors are increasing
- Huge resistance in international countries
over cultural and political issues
THERE ARE ____ MAIN THEME(S)
TO DECORATED IN STORES ?

1 2

3 4
HERITAGE ARTISAN MODERN