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Starbucks Corporation Competing in a Global Market Term Paper

… Starbuck's Case Study

Briefly describe the history and evolution of Starbucks.

Seattle entrepreneurs Jerry Baldwin, Zev Siegl, Gordon Bowker founded Starbucks in 1971, locating their coffee importing business in Seattle's Pike Place market. The founders were content to grow the coffee importer to five stores in the metro Seattle area, and were gradually becoming known in the coffee industry, and as a result of these associations met Howard Schultz, who would eventually buy the chain and transform its business model. Mr. Schultz was passionate about introducing retailing concepts he had originally discovered during a trip to Milan, Italy and immediately after coming back from Italy, launched what would become the prototypical Starbucks stores, combining meetings places with good ambience for friends catching up with each…. [read more]

Starbucks Corporation: Competing a Global Case Study

… In other words, the company should work with local PR companies that can provide proper knowledge on the local market.

Starbucks' managers should decide what activities are best supported by the company. It is recommended to work on revealing the company's interest in national products in these countries, while combining them with the company's most popular products. In addition to this, managers should identify the environmental activities that present the highest importance in these countries and support them. This strategy could have significant effects on improving the situation of the company.

Reference list:

1. The Politics of Coffee (2011). Talk about Coffee. Retrieved September 1, 2011 from

2. Annual Report (2009). Starbucks Corporation. Retrieved September 1, 2011.

3. Wit, B. & Meyer, R. (2010).…. [read more]

Starbucks Evaluation a Business Code Essay

… "Even the appealing health insurance benefit has prompted complaints. Some workers who claim to have worked at Starbucks say they weren't able to maintain their health benefit because managers deliberately shortened their work hours. (To be eligible for health coverage, employees must work a minimum of 20 hours a week, or 240 hours during a quarter.)" (Starbucks is hiring buts its jobs are overrated, 2012 Business Insider). Starbucks must retrain its managers as to what constitutes ethical treatment of employees, just as it has re-trained its baristas in how to make coffee. It must also redefine its ethical standards regarding Fair Trade and how the coffee that has made it famous is produced and sold.

Reacting to the code

Although Starbucks is far from problem-free…. [read more]

Starbucks Coffee Marketing Plan Industry Essay

… Marketing Strategy

One trend that was identified that has worked to define a new point in history is the rise of populist movements worldwide. First it was the Arab Spring, then Occupy Wall Street, and the massive protest throughout the U.K (BBC News, 2011). These populist uprisings have reached record heights and numbers that haven't been seen in over a half a decade or in some countries much longer. As a result of these populist movements, it seems that a significant portion of the public consciousness has shifted towards are more collectivist position which will have significant consequences on business into the future. Many of these populists' movements had an underlying theme by the protested organized and stated their contempt for corporations and corporate greed.…. [read more]

Starbuck's Strategy and Internal Initiatives Case Study

… The other organizations have been in the packaged coffee area for an essentially longer period. In fact, they have been in this business for a century than Starbucks, which began to enter this division, just a couple of years back with the structuring of its Global Consumer Products Group fragment (Thompson & Shah, 2010).

Apart from the two extensive consumer item organizations, the Starbucks items additionally confront rivalry with substitute items like caffeinated beverages, sodas and other non-alcoholic refreshments. The rivalry in the specialty coffee industry is not cost-based, unlike the other industries. In this industry, utilization of coffee is not subject to the cost of the item or commodity but on the separation between every item and various value adding variables, like the nature…. [read more]

Starbucks Company Overview and Financial Analysis Term Paper

… Starbucks operates in the quick service food industry, with a coffee specialty. It has a differentiated strategy whereby it sells premium coffee-based drinks, along with food and ancillary products. The company has an international scope, and this geographic diversification has helped it grow into a global power in the coffee industry. Starbucks also loosely competes against other providers of caffeine, a disparate group, but one that at times has benefited from consumer dissatisfaction with Starbucks' prices.

Starbucks has come under intense competition in recent years. Its competitors in the coffee business are almost all significantly smaller by revenue, but in food service it now competes against McDonald's, a much larger company. This has shifted the emphasis at Starbucks from generating revenue from coffee to generating…. [read more]

Starbucks Struggled SWOT

… This audience is growing rapidly -- 4.6% per year, and it sees Starbucks as cool (O'Farrell, 2011). Teenagers and children are just 2% of the company's audience, leaving the other 9% or those over the age of 40.

The audience for Starbucks being mainstream, it can be expected that it shares roughly the same demographic characteristics of the American market in general, with perhaps a slight skew towards higher incomes and levels of education as a reflection of the company's premium status. Starbucks is also heavily involved in the Asian market, and sees it as a major source of growth in the coming years (Sanchanta, 2010). The Asian market has a massive population that is improving its wealth every year. The company has far fewer…. [read more]

Starbucks' Human Resource Management Policies Essay

… The high commitment approach to human resource management seeks to "elicit a commitment so that behaviour is primarily self-regulated rather than controlled by sanctions and pressures external to the individual and relations within the organization are based on high levels of trust" (Gratton, Hailey, Stiles & Truss 1999, p. 41).

Although pay and benefits remain among the most important motivational factors in the workplace, the high commitment HRM model recognizes that there are other factors involved that play a role in individual motivation as well that must be taken into account. In this regard, Chonko and Roberts (1996) report that, "Of all the many properties that characterize work in formal organizations, pay is one of the most important. Pay has been found to influence significant…. [read more]

Starbucks Management Analysis Company Overview Starbucks (NASDAQ Research Paper

… Starbucks Management Analysis

Company Overview

Starbucks (NASDAQ: SBUX) is today the global leader in coffee retailing, supply chain and quick service restaurant (QSR) development for beverages and light foods. As of November 29th the company has a market capitalization rate of $31B, generating $11.7B Revenue and $1.2B Net Profit, including a complete reversal of their liquidity ratios from 2009 to today. A transformation of this level is extremely difficult to attain during periods of economic growth. To attain this level of accomplishment in the midst of uncertain, often challenging times, the management teams at Starbucks had to concentrate on excelling at their core strategies and making in-store operations as efficient and profitable as possible. To see an analysis of the transformation of Starbucks during the…. [read more]

Starbucks Global Expansion Case Study

… Starbucks

The explanation for the reversal of the franchise/company-owned split is that franchising allows for easier entry into foreign markets. With some countries, like China, dealing with the government is much easier with a Chinese partner, but even in relatively free-market countries a local partner is valuable. Local partners have better knowledge of local tastes and local working conditions, so Starbucks is able to gain faster and more effective market entry by utilizing the expertise of a local franchiser. Not only does the local franchiser have better knowledge of local workforces, but they are also able to tailor the menu and the overall Starbucks experience to the needs of locals. The result of this is that the local franchiser is more likely to succeed, by…. [read more]

Starbuck Augmented Potter Analysis Essay

… Starbuck's Augmented Porter Analysis

Starbucks' Augmented Porter Analysis

The article a Fresh Look at Industry and Market Analysis (Slater, Olson) the authors recommend a revised framework based on the Porter Five Forces Model. The most significant differences between the Five Forces Model and the augmented model for market analysis as suggested by the authors is the consolidation of competition and the defining of a new category, Complementors. There is also a defining of Market Turbulence in the revised framework as a stand-alone attribute, taking into account the recessionary climate globally recently and the more turbulent economic times in aggregate since the Porter Model was created over twenty years ago (Slater, Olson, 16). The augmented model for market analysis is ideally suited for analyzing Starbuck's, as…. [read more]

Starbucks Strategic Issue in 2008, Starbucks Closed Term Paper

… Starbucks

Strategic Issue

In 2008, Starbucks closed 600 underperforming stores.

Most of these stores had been opened within the past couple of years, and had failed to gain business the way that most older Starbucks stores had. With the move, the company essentially ended a strong growth phase and moved towards a more mature position in the market.

The significance of this move should not be lost on Starbucks management. For the past twenty years, the company has been on a very aggressive growth trajectory. They were able to build their brand successfully in many nations, some of which did not even have a coffee drinking tradition. In becoming an icon, Starbucks was able to carve out a unique position in the market and defend…. [read more]

Starbucks Environmental Marketing Analysis Proposal

… Over the past recent decades, global communities have suffered drastic changes that lead to numerous mutations. For instance, the manufacturing entities are no longer centered on the sole production operations, in the hope of selling to customers whatever they produce. Today, they first research the market to identify unsatisfied needs and then produce items to serve the identified needs. Also, in the field of technological appliances, those that simply do the work are no longer sufficient. Managers search for better alternatives, for those technologies which increase the operational and cost efficiencies. Then, the human resource is no longer the force operating the machines, but it has become the organizations' most valuable asset. But despite these mutations, the sole purpose of the business operations remains the…. [read more]

SWOT Starbucks SWOT

… SWOT Starbucks

Starbucks SWOT

Starbucks is faced with a multitude of challenges from outside its own environment. These threats can include increasing prices in the commodities and other resources, changing economic conditions within the global environment or any other challenges presented by the external environment.

In order for the coffee-based beverages store to succeed within the international setting, it is necessary for it to identify all of the threats which could impact it. After identification, it is necessary for the organization to devise strategies which best respond to these threats and which as such increase the company's chances of international success.

At the current level, the threats facing Starbucks can be organized into four specific categories, as follows:

Capital markets

New entrants

World wide economic…. [read more]

Starbucks Case Analysis Essay

… Entrepreneurs in India have turned away from tea and adopted coffee as the nation has started to witness economic achievements (Grimm, Lee & Smith, 2006).

3.2.4 Threats

The last problem that needs to be analyzed is the threats the company is experiencing and will experience later on. A significant threat that it has to deal with is competitors, of which McDonald's is an emerging opponent. McDonald's can launch their McCafes in present franchise shops all over the globe, and they are targeting European countries. This gives McDonalds a leg up on Starbucks. If McDonald constantly opens McCafes through European countries and other areas around the globe because of the low starting expenses they experience, it could greatly decrease geographical opportunity benefits that Starbucks has over…. [read more]

Starbucks Five Forces Barriers Term Paper

… Coffee is a timeless product in which people will rely on indefinitely. However, energy drinks are something of a threat to this trend as people look to other sources for caffeinated energy.

Rivalry among Competitors - High

The rivalry among competitors depends on the specific distribution channel however on the whole the rivalry can be considered as high. Starbucks main target markets are positioned mostly in proximity to their retail locations however their products are also located in supermarkets and retailers as well as in convenience stores and other locations.


Starbucks has had a long history of using creative marketing techniques to generate growth. However, the U.S. market is saturated with competitive rivalry on all the various distribution channels. The energy drink segment is…. [read more]

Market Communication Plan for Divine Marketing Plan

… This communication plan will help the company in better targeting its consumers, transform their consumption behavior in the favor if Fair Trade products, and improve the company's advertising and promotional campaigns (Ferrell & Hartline 2011).


The DAGMAR Approach (Defining Advertising Goals for Measured Advertising Results) will help the company in achieving its aforementioned aims and objectives in the most productive and efficient way. According to this approach, the company's consumers will pass through four different stages in order to become its brand loyal customers. These stages are: awareness, comprehension, conviction, and action (Batra, Myers, & Aaker 2009).

1. Awareness:

The first step in the DAGMAR Approach is to create awareness among the general consumers about the company's products. In this step, Divine Chocolate…. [read more]

Managing in a Global Term Paper

… Johnson and Johnson have leveraged technology to become efficient bit more significantly it has been used to drive their business aims. In addition the company understands the human element. (Johnson & Johnson Wins Global Corporate Achievement Award)

In their business and have built a distinct culture that plays a key role in their success. The company couples a strong research and development effort along with an aggressive takeover strategy. It has a decentralized structure with about 200 autonomous business activities that help make acquisitions a success. The leadership is low key and the leadership promotes decentralized decision making coupled with an ironclad accountability to produce results. On the innovation front, more than a third of its sales are generated from products launched in the last…. [read more]

Lolacc Competitive Advantage Essay

… There are a number of alternatives that can help take a good business and turn it into a great one. Diversification is one option, and there are a number of different ways that a company can diversify. Right now, Lola Savannah has a single business multiproduct strategy, which does not provide much diversification but this is a small company we are talking about. Lola does have the opportunity, however, to diversify through related diversification. This approach would mean something like opening a chain of coffee shops, or getting into the tea business. Lola Savannah has a good brand name and the product is exceptional. It should pursue other opportunities within the coffee business in order to grow. Unrelated diversification is not recommended because it moves…. [read more]

Starbucks Coffee Term Paper

… Globalization and International Business

The cultures in the age of globalization now cross each others path. Globalization has brought the cultures together where they take influence from each other. Yet some common element that is the like for American brands such as Starbucks, Pizza Hut, and Subway etc. dominates the taste buds of many a nations. American brands are at times in contrast to the traditional ways of different societies. For example, Coca-Cola is making confrontation on the tea culture of India by making an effort to convince people to swallow more of its carbonated beverages. Similarly, McDonald's is waging war with the French notion of a lengthy mealtime. Starbucks is not just targeting and hitting carbonated beverages category but they are waging a war…. [read more]

Starbucks: Delivering Customer Service Starbucks, the American Case Study

… Starbucks: Delivering Customer Service

Starbucks, the American giant of coffee shops, is one of the classic success stories in an economy where service-based organizations like Starbucks hold the best potential for the establishment of highly lucrative market niches (Kline, 2005). That is not to say that Starbucks has not seen its share of challenges or has not been faced with having to make decisions which could be highly risky. Because of the success of Starbucks, dozens of imitators have tried to imitate, and topple the coffee giant, and because of this constant need to protect market share, Starbucks, at the time of this case study, is faced with the decision of whether or not to move with a plan to invest an additional $40 million…. [read more]

Finance Starbucks Is Engaged Essay

… With Starbucks, there was substantial investor concern about the firm's deteriorating financial position in 2007 and 2008, which was related to the closing of stores, shrinking revenues, increased competition (Groom, 2007).

At that point in time, Starbucks shares were at $28.39 but the stock market had not yet fallen. This volatility contributes to the company's relatively high beta today, as indicated with the 5-year Starbucks chart is overlaid with a 5-year S&P 500 chart (Yahoo! Finance, 2010). The firm's rise from this trough is also not mirrored in by movements in the S&P, so firm-specific risk has been affected by a loss of investor confidence in 2007 and a restoration of investor confidence in 2010.

Since that point, Starbucks shares continued in freefall to below…. [read more]

Singapore Has Long Built Essay

… One of the benefits of this for any company having supply chain issues is that they can turn to any of the world's leading solutions providers, the world's most important cargo hubs, and a political environment that stays out of the way.

Singapore has also staked a claim as a leader. You simply do not hear about companies having supply chain issues in Singapore. Companies typically look to Singapore to offshore or outsource some of their logistics to the many good partners that operate within the country. Emerging areas of supply chain like cloud computing have allowed Singapore to expand and grow with the industry. Companies are now using Singapore's logistics capabilities to manage their information supply chain.


The different case studies here demonstrate…. [read more]

Bsba Integrative Project Integration Construct Essay

… However, in recent years Starbucks fortunes have been very much 'up and down,' depending on the economy. It was also necessary for Starbucks to retrain its workers to serve its coffee, given numerous complaints about the (relatively) pricey coffee's quality. Starbucks has had to reign in its domestic growth, given its too-rapid expansion in recent years, which has drawn the ire of some communities and consumers and resulted in criticism of its coffee. Starbucks is instead focusing on expanding internationally, where its market is less super-saturated and there is more room for growth. Abroad, Starbucks' American status is often a popular draw for patrons.

Identify any objectives, which do not serve to support the strategic goals, and recommend either that they be eliminated or that…. [read more]

Costa Coffee Essay



Costa Coffee operates as part of the Whitebread Group as something of an anomaly. While the company as a whole operates such enterprises as 'budget' hotels, Costa Coffee is more of a premium-focused enterprise. "The coffee business, for the last six years run by John Derkach, operates as a very separate business unit and there has been speculation for some time that it would be spun off.[footnoteRef:21]" Laws that permit the coffee chain to do so might be beneficial, given that it operates on a much different business model than the rest of Whitebread. [21: Simon Bowers, "Whitebread shuffle brews talk of sale or float," The Guardian, April 3, 2011, accessed July 23, 2012 at]

Other legal aspects impacting Costa has been…. [read more]

Strategic Audit of a Corporation Research Proposal

… Strategic Audit

Current Situation. A. Current Performance

FedEx Corporation (NYSE: FDX) has struggled in the past couple of years as a result of the global economic downturn. For the 2009 fiscal year (year ended May 31, 2009), FedEx earned $35.497 billion in revenue, down from $37.593 billion the year before. The company's net income was $98 million, down from $1.125 billion the year before. FedEx has reported that they are gaining in market share, however, in all of the company's transportation segments (Carey, 2009). Unofficial sources estimate FedEx's share of overnight to be 49%, making it the market leader. The company's share of "fast delivery," a combination of overnight and 2-day, is estimated to be 31%, ranking it just behind USPS and just ahead of…. [read more]

Strategy Development a Directional Essay

… Management therefore needs to be very efficient. A look at different cost leaders highlights that there are many different ways to achieve this, and it is not just about cutting costs.

Wal-Mart succeeds as a cost leader because it invests heavily in distribution and logistics. The company has become a leader in the field and the result is that it holds inventory for a relatively short period, and invests less in warehousing space than competitors. This allows it to have goods in stores ready to be sold, rather than in warehouses or on trucks. But it is a leader in the field because of its thinking on the subject and its investments in technology. Another cost leader is Costco, and they pay their workers high…. [read more]

Operations Management Mcdonald Case Study

… Operations Management

McDonald's is a fast food restaurant and one of the world's most successful franchise chains. In spite of recent setbacks, challenging the company to reconsider its role in the marketplace and its brand identity, the company continues to thrive. McDonald's has restaurants in 6 continents and well over one hundred countries. Perhaps the greatest key to the success of the McDonald's model is operations management. Operations management has been a cornerstone for the success of the company because it informs the details in everyday operations, leading to the delivery of products to the customer. Ultimately, McDonald's is a service- and customer-oriented business that uses strategic operations management to manage expenses, retain customer loyalty, and create a consistent brand. Its delivery system is finely…. [read more]

Strengths the Number and Location Case Study

… Opportunities

Starbucks Global Consumer Products business unit offers substantive opportunities to increase market share, particularly in international stores. Growth in Europe has occurred at a slower pace than in the U.S. There has been less market saturation and cannibalization of stores ("Growth strategy," 2002).

Starbucks has become expert at engaging customers and developing digital voice-of-the-customer channels. As a result, Starbucks innovations emerge in a fully conditioned environment, and nearly always, flourish. If Starbucks is able to sustain this type of relationship with its consumers, additions to the product mix are likely to be well received ("Schultz return," 2008).

Starbucks is moving more assertively into the single-cup / single-serving coffee market -- a U.S.$21 billion international industry and -- at U.S.$2 million -- the fastest growing…. [read more]

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