Starbucks' strategy and pest analyses 1

Starbucks’ STRATEGY AND PEST

ANALYSIS

NEVROZ GÖSTERİCİ

Established in 1971 at Seattle, Washington Famous for its quality fresh-roasted coffee beans and stylish atmosphere. Over 9,000 stores worldwide Product lines include :

− beverages (coffee, Tazo tea, soda, juices)− pastries− whole coffee beans− coffee-related hardware and equipment− merchandise (mug, CDs)

Overview

Starbucks’ Strategy

Rapid store expansion strategy• Domestic store expansion• International store expansion• Employee Training and Recognition• Real Estate, Store Design, Planning, and Construction• Store ambience

Product Line

Coffee purchasing strategy

Starbucks’ Strategy

Rapid store expansion strategy

• Domestic store expansion− A three-year expansion strategy− “Starbucks everywhere” approach

• International store expansion− Company-owned and company-operated stores or licensing − Created a new subsidiary, Starbucks Coffee International− Expanded its consumer products channel in South Pacific region

Starbucks’ Strategy

• Employee Training and Recognition− Systems to recruit, hire and train baristas and

store managers screening training programs awards for partners

• Real Estate, Store Design, Planning, and Construction− A broad range of store formats (the right image and character)− A “stores of the future” project team− High-traffic, high-visibility store locations− Control of average store opening costs− Wi-Fi availability at stores

Starbucks’ Strategy

• Store ambience− The concept of “everything matters”

− Assessment of standards

Starbucks’ Strategy

Product Line

•Wide range of products choices•Special product promotion•Selling music CDs •Joint ventures

PepsiCoDreyer’s Grand Ice Cream Jim Beam Brands

•Acquisitions Hear Music Ethos Water

•Starbucks Cards•Partnership with Bank One

Starbucks’ Strategy

Coffee purchasing strategy

• Building relationship with growers and exporters, checking on agricultural conditions and crop yields, and searching out varieties and sources that would meet Starbucks’ standards.

• Using fixed-price purchase commitment and purchasing coffee future contracts

• Contributing to the sustainability of coffee growers and helping environment conservation

• Purchasing and marketing Fair Trade Certified coffee• Promoting coffee cultivation methods that protected biodiversity and

maintained a healthy environment

PEST Analysis

Political Influences

− Relationships between U.S. and countries producing coffee beans

− Environmental regulations− Industry-specific regulations

Economic Influences− Demand for food and beverages− Customers’ buying power− Exchange rate & taxation

PEST Analysis

Social Influences− Trend− Consumer preferences− Changes in lifestyle and occupation− Education

Technological Influences− advances in manufacture− biotech and agricultural development

− IT developments