Question

year of incorporation, products and services, number of employees, turnover, etc.

2. Mission statement

3. SWOT Matrix

4. Current strategies

5:Recommended strategies and conclusion

.............………

about Starbucks company

Answer 1

Starbucks company

1. A. Year of incorporation - March 31, 1971; 49 years ago Pike Place Market, Elliott Bay, Seattle, Washington, U.S.

B. Products & Services - Mainly Coffee beverages, smoothies, tea,baked goods, and sandwiches coming under following categories

1) Drinks

a) Hot Coffees

b) Hot Teas

c) Hot Drinks

d) Frappuccino® Blended Beverages

e) Cold Coffees

f) Iced Teas

g) Cold Drinks

2) Food

a) Hot Breakfast

b) Bakery

c) Lunch

d) Snacks & Sweets

e) Yogurt & Custard

3) At Home Coffee

a) Whole Bean

b) Verismo® Pods

c) VIA® Instant

d) Cold Brew

4) Shopping Bags

a) Shopping Bags

C.Number of Employees: 291,000

D. Turn over -  US $24.71 billion

2. Mission statment:

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

3. SWOT Matrix

Strengths

• Well established brand name that is recognised globally around the world.
• In 2017 Starbucks were number 2 for the 10 most valuable fast food brands world wide valued at $44bn dollars (statistica.com)
• Their product line comprises of a large variety of coffees from standard to special artisan coffee.
• The physical environment of their stores appeals to their target audience. The soft sofas , the free wi-fi is helps create the success of the stores.
• Great customer services
• Coffee shops are the go to stores for people who wish to meet up socially.
• The promotional message of Starbucks has enabled them to retain their crown of being in the top 5 recognised brands.
• Their ability to think global but act local.
• Growth in USA and China , approximately 14000 stores in USA their largest market and 3000 stores in china, their second largest market based on store numbers, according to statistica.com in October 2017.
• A total of 22519 stores globally

Weaknesses

• Perception over tax issues. Starbucks is accused of not paying their tax fully in certain countries.
• The pricing strategy dictates that they are aimed at the middle class/higher class segment. This group are more likely to adjust their spending during a recession, this means that sales during a period of recession could be affected.
• Products easy to copy. There is little technicality about producing coffee.
• The arrest of two customers at a Philadelphia Starbucks over racism earlier in 2018, has hurt the brand's sales and brand image.
• Howard Schultz Starbucks Executive Chairman announces his step down in June 2018

Opportunities

• Emerging markets from India, Africa, and China
• Growing coffee market sales globally means there is an opportunity for increased sales.
• The middle class in India and China is growing, they are consuming more coffee and this can be seen as an opportunity for Starbucks
• Ready to drink coffee market is becoming a favourite as consumers shift from drinking sugary fizzy drinks to ready to drink coffees.

Threats

• The growing dominance of Costa. Number one in the market and growing dominance in emerging countries.
• Mcdonalds brand of coffee, McCafe as a low cost coffee seller. Mcdonalds is aggressively selling coffee at an affordable price.
• External factors can have a major influence on the price of coffee. For example, weather, wars, infestation of crops
• The economic cycle can have an impact on the pricing of coffee.

4. Current strategies

A. Offering ‘third-place’ experience. Starbucks stores are effectively positioned as a ‘third place’ away from home and work, where people can spend time in a relaxed and comfortable environment with their friends or alone. Customers are even welcome to get their work done in a Starbucks store. All company-owned stores in the US and most company-owned stores abroad offer free wi-fi. “Starbucks stores are meticulously designed to make customers stay longer, buy more, and return for another visit.”

B. Selling coffee of the highest quality. Starbucks business strategy can be classified as product differentiation. Accordingly, the coffee chain giant focuses on the quality of its products and customers pay premium prices for high quality. Excellent customer services as one of the solid sources of Starbucks competitive advantage further increases the attractiveness of the coffee retailer.

C. International market expansion with the focus on emerging economies is one of the key elements of Starbucks business strategy on long-term perspective. The share of company’s revenues from China/Asia Pacific (CAP) global market segment increased to 14% in 2016 from 7% in the previous year. In total, 2719 new Starbucks stores opened during the last two years.

D. Integrating technology into various business processes. “Starbucks is adamant when it says that the purpose of new technology is not just to improve its website or to process payments quicker for people who are waiting in line” The coffee chain achieves technology-related value addition via integrating technology into a wide range of business processes and procedures such as new product development, communication of the marketing message, completing sales and monitoring the level of customer satisfaction. The most notable examples for value creation via technological integration by Starbucks include the launch of Mobile Order & Pay feature, which allows customers to buy without getting in line, the launch of voice ordering app and “sending text message notifications to customers in the Seattle area when their mobile orders are ready”

1. Offering ‘third-place’ experience. Starbucks stores are effectively positioned as a ‘third place’ away from home and work, where people can spend time in a relaxed and comfortable environment with their friends or alone. Customers are even welcome to get their work done in a Starbucks store. All company-owned stores in the US and most company-owned stores abroad offer free wi-fi. “Starbucks stores are meticulously designed to make customers stay longer, buy more, and return for another visit.”

2. Selling coffee of the highest quality. Starbucks business strategy can be classified as product differentiation. Accordingly, the coffee chain giant focuses on the quality of its products and customers pay premium prices for high quality. Excellent customer services as one of the solid sources of Starbucks competitive advantage further increases the attractiveness of the coffee retailer.

3. International market expansion with the focus on emerging economies is one of the key elements of Starbucks business strategy on long-term perspective. The share of company’s revenues from China/Asia Pacific (CAP) global market segment increased to 14% in 2016 from 7% in the previous year. In total, 2719 new Starbucks stores opened during the last two years.

4. Integrating technology into various business processes. “Starbucks is adamant when it says that the purpose of new technology is not just to improve its website or to process payments quicker for people who are waiting in line” The coffee chain achieves technology-related value addition via integrating technology into a wide range of business processes and procedures such as new product development, communication of the marketing message, completing sales and monitoring the level of customer satisfaction. The most notable examples for value creation via technological integration by Starbucks include the launch of Mobile Order & Pay feature, which allows customers to buy without getting in line, the launch of voice ordering app and “sending text message notifications to customers in the Seattle area when their mobile orders are ready”

5:Recommended strategies and conclusion

Starbucks biggest growth is in its International segment. The emerging markets of Brazil, India, China, South Africa and Mexico with a growing middle-class population continue to offer significant opportunities to add new stores and serve more customers. At the same time, while presuming its product quality and strong brand, Starbucks should improve its inventory and production strategies to reduce the unit price, in order to reduce the threat from imitation. Last but not the least, Starbucks has great growth opportunities in Tea and Fresh Juice products mix. They should build up these products along the same line of their core coffee products. Also as consumer tastes and lifestyle shift towards more snacks and beverages options, Starbucks should tailor its menu’s and expand to give healthier product offerings in its mix