IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

STARBUCKS

Team Members
Mihai
Sabin
Stance
l
Robert
o

Gheor
ghe
Razvan

IT IS NOT JUST COFFEE, IT IS STARBUCKS

COFFEE

Structure of
presentation
Introduction

History
Structure of company
Mission
SWOT Analysis
Strengths, Weaknesses, Opportunities,
Threat
Global Strategy
Summary
Conclusion

Starbucks

BACKGROU
ND
Since 1971, Starbucks Coffee
Company has been committed
to ethically sourcing and
roasting the highest
qualityArabica coffee in the
world. Today, with stores around
the globe, the company is the
worlds premier roaster and
retailer of specialty coffee.

HISTORY
1971 Starbucks
Coffee, Tea, and Spice
store (coffee bean
roasting) opened in
Seattles Pike Place
Market.

1987 Il Giornale
acquired Starbucks and
changed the name into
Starbucks Corporation.

1982 Howard Schultz

joined Starbucks.

1986 Howard Schultz

established Il Giornale
Coffee Company.

1992 Starbucks
decertified the union
and made IPO.

1995 Starbucks
Coffee International
opens in Japan
Starbucks
implemented ESOP.

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

LOGO

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE

Organizational structure
A company individual organizational structure is a
formal composition of task and reporting
relationships that allows the company to
control, coordinate, and motivate employees so
a common goal can be achieved.
Operate under four U.S. divisions
Major advantages - maximized
communication channels
Continuation of support functions operating as
their own department and supporting the
shared goals and visions of each of the U.S.
divisions as well as the international circuit
South Park, IPYGO, May 2009

Size & Location

UNITED STATES STORES:

50 states, plus the District of Columbia

7,087 Company-operated stores
4,081 Licensed stores

INTERNATIONAL STORES:

43 countries outside the United States.

1,796 Company-operated stores
2,792 Licensed stores

More than 15,700 stores!

South Park, IPYGO, May 2009

PRODUC
TS
Starbucks Corporation offers coffee products and caf
services throughout the world. It sells high-quality whole
bean coffees (from around the world) along with other
types of freshly brewed coffees, premium teas and
espresso beverages, hot and cold. It also offers various
sodas and juices, pastries and confectionery, coffeerelated accessories such as the Starbucks mugs, and
other caf related products such as the Starbucks CD.
Starbucks sells its special products through its companyoperated retail stores, warehouse club chains, office
coffee distributors, institutional foodservices such as
hotels and airlines, mail-order catalogs, and through its
electronic store.

MISSION
Company
Mission
Statement:
Establish Starbucks as
the premier purveyor of
the finest coffee in the
world while maintaining
our uncompromising
principles while we
grow.

Environment
al Mission
Statement:
Starbucks is
committed to a role of
environmental
leadership in all facets of
our business.

SWOT
ANALYSIS

STRENGTH

- Starbucks is the market leader in the coffee

Market.
- Customers are satisfied with the quality and
taste of Coffee.
- High brand equity.
- Operating in 40 countries worldwide.
- Huge number of employees approx. 13
thousand.

WEAKNESS
- Pricing are higher as compared to the
competitors.
- High operating cost
- The business profits are highly
dependent on coffee product.

OPPORTUNITY

- Entry into Asian market like Pakistan, India and

Bangladesh.
- Market penetration in International countries.
- Co-branding with other food manufactures.
- Whole bean sales in supermarkets like.

THREATS:
- Numbers of competitors are increasing, like
Barista, Caf coffee Day, Gloria jeans coffee.
- Variation in coffee prices in developing countries
- People started to become more health conscious
- Labour Unions issues in US and international
countries
- Starbucks facing huge resistance in international
countries over cultural and political issues.

OPERATION
MANAGEMENT
GLOBAL
STRATEGY

INVENTURY
MANAGEMENT

COMPRTITIVE
STRATEGY

LAYOUT
STRATEG
Y

QUALITY
STRATEGY

PROCESS
STRATEGY

GLOBAL
STRATEGY
International
Strategy

- Businesses moving from domestic to an international strategy give the firm

greater return on its investments.
- In 1995, due to the saturation of the United States market, Starbucks
started to expand its business overseas.
- By 2001, Starbucks had more than 150 stores and plans to continue its
success.
- The company began by entering into joint ventures with local businessmen.
- Starbucks a strong expansion campaign, opened in foreign markets by
2001.
- This plan made the opening of over 600 stores located out of the United
States possible.
- More than 200 units including China, Japan, Kuwait, Lebanon, New Zealand,
Malaysia, the Philippines, Singapore, South Korea, Taiwan, and Thailand.

COMPETITIVE
STRATEGY
Focused differentiation
by serve niche buyers
better than rivals.

Starbucks has resources

and capabilities to
effectively serve an
attractive niche.

Buyers have distinctive

preferences, special
requirements, or unique
needs.

Costly or difficult for

multi-segment
competitors to meet
specialized needs of
niche members.

Have unique
capabilities to
serve needs of
target buyer
segment.

Big enough to be
profitable and offers
good growth
potential.

QUALITY
STRATEGY
For Starbucks, quality simple
means.

The company even uses "mystery

shoppers.
Starbucks coffee buyers spend
about 18 weeks each year visiting
coffee growers and suppliers.
Starbucks gets the first pick of
some of the worlds best coffee
crops.

QUALITY
STRATEGY

Quality means conformance to standards:

be welcoming
be genuine
be considerate
be knowledge
be involved
TQM tools:
Continuous improvement .
Just-in-time (JIT).

Summary

Building
a
Compan
y with
Soul.

Opposing
Franchisin
g because
of Quality
Control
and
Culture.

Only
selling
coff ee
beans
without
artifi cial
fl avors.

Satisfy
custome
rs by all
means.

Employee
s
contributi
o-n and
involveme
nt in
making
Starbucks
a better
company.

THANK
YOU

IT IS NOT JUST COFFEE, IT IS STARBUCKS COFFEE