Starbuck Going Global Fast ; case study [ppt]

Introduction about Starbuck Corporation:

Starbucks is one of the largest chains of coffee shops in the world. They started their business in the early 80s as a tiny chain of Seattle coffee shops, grew rapidly in the 90s and now own 5,689 coffee shops in 28 countries. This chain of coffee shops is very well managed by a well seasoned management team popularly known as H2O, because of Howard Schultz (Chairman and Chief Global Strategist), Howard Behar ( Head of North American Operations), and Orion Smith (CEO).

In 1971 – Starbucks opened operations in Seattle’s Pike Place Markets with the future aim of providing coffee to a number of restaurant and surrounding bars.

In 1982 – the company took a change in direction through the views of Schultz, who after visiting Italy tried to adapt the same principles in order to a strong bar culture.

In 1987 – Giornale had decided to take over the assets of Starbucks and also, further changed its name to Starbucks Corporation. By the end of the year, Starbucks had increased the number of stores to 17 and furthered its location span by entering Chicago and Vancouver.

In 1990 – the company took further steps forward with expansion of Seattle headquarters and an increase in resources with the opening of a new roasting plant.

In 1995 – the company really established its name with the opening of the 676th store as well as increasing the products in store with the addition of compact discs a result of a previously popular experiment with ‘in-house’ music.

In 1996 – the company kept on stretching its reach by entering into the market of Japan, Singapore and Hawai.

By the year 2000 – things had progressed so far that 3,300 stores were already opened, the company had ventured into countries ranging from England to Australia & China.

By last quarter of 2008 – total international stores became 5113 store in United States.

Successful Factor:

1. Sustaining Coffee Quality:

Starbucks consider it an opportunity to share their passion and knowledge of coffee, serve the highest-quality beverage, and deliver an experience so rewarding that this customer becomes their customer. Starbucks strive to create the ultimate Starbucks Experience for all of customers, all of the time.

2. Creating a Sustainable Approach

Starbuck traveling to coffee-growing regions around the world, they have come to deeply appreciate the care that goes into producing high-quality coffee. Their coffee buyers, quality experts and agronomists spent considerable time in the field, sometimes traveling great distances to reach a particular coffee farm.

3. The Link Between Quality and Price

- Through our close working relationships with coffee farmers and suppliers, Starbuck have always emphasized the importance of quality as the best, most sustainable driver of higher prices paid.

- Starbuck understand that coffee farming, like any business, must be profitable to be sustainable.

- Furthermore, Starbuck know that when coffee farmers do not earn enough to cover their production costs and/or provide a reasonable income, they may switch to other crops or perhaps stop growing coffee altogether.

Coffee and Farmer Equity (C.A.F.E.) Practices:
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a. Product Quality (prerequisite)

All coffee purchased from C.A.F.E. Practices suppliers must meet Starbucks high-quality standards.

b. Economic Accountability (prerequisite)

C.A.F.E. Practices suppliers are required to submit evidence of payments made at all levels along our coffee supply chain.

c. Social Responsibility (evaluated components)

C.A.F.E. Practices suppliers – and other entities within their supply network – must have certain practices in place that ensure safe, fair and humane working conditions; the protection of workers’ rights; and adequate living conditions.

d. Environmental Leadership (evaluated components)

In the growing and/or processing of coffee, environmental measures must be in place to manage waste, protect water quality, conserve water and energy use, preserve biodiversity and reduce agrochemical use.

Starbucks’ Marketing Strategies:

“Perfect Cup of Coffee”

Starbucks history has shown that they place a huge emphasis on product quality. Their coffee, even if priced slightly more expensive than expected, is notorious for satisfying customers with its rich, delicious taste and aroma.

“Third Place”

From the very beginning, the Starbucks marketing strategy has focused on creating the “third place” for everyone to go to between home and work. Creating this unique and relaxing “experience” and “atmosphere” for people has been very important for the company as they have realized that this is one of the strongest concepts attached to the company, to which customers have been strongly attracted

"Customer Satisfaction"

Customer satisfaction is a very important issue with Starbucks. From entrance to the store to the very last drop of their coffees, it is a must that customers feel the uniqueness of enjoying their Starbucks coffee experience.

“Creating a Starbucks Community”

The Starbucks marketing strategy has even expanded to create a community around their brand. On their website, individuals are encouraged to express their experiences with Starbucks history, and the company strives to “personally” join in the discussions.

"to be continue...if you want all of this, you can download the STARBUCKS case study ppt file in here