Case: 13 Starbucks Corporation 2009

Presented by: Deepika Mayank Saurabh Sumit

History
First Starbucks opened in Seattle Washington

March 30, 1971

Jerry Baldwin-English Teacher Gordon Bowker-Writer Zev Siegh History Teacher

Then
Entrepreneur Howard Schultz joined the company in 1982 Director of Retail Operations and Marketing Idea of selling beverages

Then
April, 1984 first store to sell beverages was opened Served 400 customers over the 250 customer

average at their best store

II Giornale Acquires Starbucks Howard Schultz Starbucks President and CEO

worldwide economic recession hit in 2007 and simultaneously McDonalds entered the coffee business big time. Starbucks closed 600 underperforming stores in the United States in 2008 and plans to open only about 200 new stores in 2009.

You can now wake up to smell the $4.00 per cup coffee at Starbucks. But McDonalds is now running an ad saying, $4.00 coffee is dumb as the firm attacks Starbucks around the world with its $1.00 (and less) coffee. Starbucks needs a clear strategic to offset the new attacks of McDonalds that are trying to attract all Starbucks customers.
Starbucks 10/31/2011

Schultz, Starbuckss CEO, says the media exposure concerning McDonalds versus Starbucks coffee products actually helped his firm by creating unprecedented awareness for the coffee category overall.
Starbucks 10/31/2011

Product Diversification

SBUX (NASDAQ)

Now
World's premier roaster and retailer of specialty coffee

8,812 company-owned stores

7,852 licensed stores in more than 50 countries

Now
Annual sales of about $10 billion as of April 2010 Sell : beverages, pastries, whole bean coffee, ground coffee, and coffee-related products

50:50 joint venture, named Tata Starbucks, will own and operate Starbucks cafs which will be branded Starbucks Coffee A Tata Alliance. beginning with stores in Delhi and Mumbai in calendar 2012.

Starbucks 10/31/2011

Structure, Mission, Vision

vision is To inspire and nurture the human spirit one person, one cup, and one neighborhood at a time.

Starbucks 10/31/2011

The company further elaborates by stating the following guiding principles:

Our Coffee It has always been, and will always be, about quality. Were passionate about ethi- cally sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners Were called partners, because its not just a job, its our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And weStarbucks each other to that standard. hold 10/31/2011

Our Customers When we are fully engaged, we connect with, laugh with, and uplift the lives of our customers even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. Its really about human connection. Our Stores When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. Its about enjoyment at the speed of life sometimes slow and savored, sometimes faster. Always full of humanity.

Our Neighborhood Every store is part of a community, and we take our responsibility to be good neigh- bors seriously. We want to be invited in wherever we do business. We can be a force for positive actionbringing together our partners, customers, and the community to contribute every day. Now we see that our responsibilityand our potential for goodis even larger. The world is looking to Starbucks to set the new standard, yet again. We will lead. Our Shareholders We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our shareholders. We are fully accountable to get each Starbucks of these elements right so that Starbucksand 10/31/2011

Mission Statement
1990 October 2008

Establish Starbucks as the premier purveyor of the

finest coffee in the world while maintaining our

uncompromising principles as we grow.

Mission Statement
October 2008 - Present

Competition
McDonalds Second Cup Dunkin Donuts
New World Coffee

Caribou Coffee

Marketing
Starbucks retail outlets seen as a place for socialization, relaxation, and reflection. electrical outlets and, in some stores, wireless access, for customers who might need to use their MP3 players or laptop computers. Additionally, they have introduced the Starbucks card with the hope of strengthening customer loyalty by improving service. Starbucks products can be found in convenience stores, grocery stores, department stores, movie theaters, businesses, schools, and even airports.
Starbucks 10/31/2011

Conclusion
Starbucks continues to be the coffeehouse of choice for many domestic and international consumers. Their strategy remains one of progressive expansion, but perhaps with more measured caution given the economic times. Recent closures of less than profitable loca- tions combined with worldwide economic conditions presents challenges for the company.

Firms such as McDonalds and Dunkin Brands desire to lure all Starbucks customers away to cheaper cups of coffee. Develop a clear strategic plan for Starbucks.