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7/31/2019 Starbucks Presentation Son
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ATAKAN NAL 2521
BAHADIR DURAN 2417
ALAR EREL 2500
KEMAL UAR 2504
LEVENT BOZKURT 2542
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Founded in 1971 by Gordon Bowker, Jerry Baldwin, and Zev Siegl, who
joined forces to open a coffee shop in Seattle, Washington.
By 1972, with the success of the first store, they opened a second store in
University Village, Washington.
Its wholesale business, which sold coffee primarily to local restaurants,
changed its name to Caravali.
In the next 10 years, the business expanded to five stores and hired
Howard Schultz to manage retail sales and marketing.
There are 16858 stores in 50 countries.
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VISION
To inspire and nurture the human spirit-
one person, one cup, and one
neighborhood at a time
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MISSION STATEMENT
Our Coffee
It has always been, and will always be, about quality. Were passionate about ethically
sourcing the finest coffee beans, roasting them with great care, and improving
the lives of people who grow them. We care deeply about all of this; our work is
never done.
Our Partners
Were called partners, because its not just a job, its our passion. Together,
we embrace diversity to create a place where each of us can be ourselves. We
always treat each other with respect and dignity. And we hold each other to that
standard.
Our Customers
When we are fully engaged, we connect with, laugh with, and uplift the lives of our
customerseven if just for a few moments. Sure, it starts with the promise of a
perfectly made beverage, but our work goes far beyond that. Its really about human
Connection.
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MISSION STATEMENTS
Our Stores
When our customers feel this sense of belonging, our stores become a haven, a break
from the worries outside, a place where you can meet with friends. Its about enjoyment
at the speed of lifesometimes slow and savored, sometimes faster. Always full of
humanity.
Our Neighborhood
Every store is part of a community, and we take our responsibility to be good neighborsseriously. We want to be invited in wherever we do business. We can be a force
for positive actionbringing together our partners, customers, and the community to
contribute every day. Now we see that our responsibilityand our potential for
goodis even larger. The world is looking to Starbucks to set the new standard, yet
again. We will lead.
Our Shareholders
We know that as we deliver in each of these areas, we enjoy the kind of success that
rewards our shareholders. We are fully accountable to get each of these elements right
so that Starbucksand everyone it touchescan endure and thrive.
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MISSION STATEMENT EVALUATION
Customers YES
Protucts and Services YES
Markets NO
Concern for survival, growth and profitability YES
Technology NOPhilosophy YES
Self - Concept YES
Concern for public image YES
Concern for employees YES
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The reason of our existance is giving the most delicious coffee quickly which is grown
and prepared by careful hands. By the power of our coffee, we are trying connect
people and uplift the lives of them. When our customers feel this sense of belonging,
our stores become a heaven, a break from the worries outside, a place where you can
meet with friends. Its about enjoyment at the speed of lifesometimes slow andsavored, sometimes faster. We want to be invited in wherever we do business. We
enjoy the kind of success that rewards our shareholders. We can be a force for
positive actionbringing together our partners, customers, and the community to
contribute every day. The world is looking to Starbucks to set the new standard,
yet again. We will lead.
OUR MISSION STATEMENT
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EFE ANALYSISOpportunity weight rate
weighted
ave.
Stability in the economy in USA for 2 years (No increase in minimum wage) 0,07 4 0,28
Population increase at Asian- American and Hispanic segments in USA 0,02 1 0,02
According to the last scientific researches, "Coffee is a harmful drink" idea changed
oppositely 0,055 2 0,11
The coffee sales increased by %25 between 2005-2010. Sales were $18,839 million
dolars in 2010 0,08 4 0,32
The small companies have high risk for bankruptcy in the industry 0,055 1 0,055
In developing countries, coffee store culture is rising 0,08 3 0,24
Increasing demand on healthy and organic foods 0,04 4 0,16
Growing demand for eating outside 0,07 3 0,21total 0,47 1,395
Threatweight rate
weighted
ave.
Due to the effects of last economic recession in 2008, the consumers are more price
oriented on eating outside. 0,07 2 0,14
Climate change can play a huge role in the amount of coffee 0,06
3
0,18Labor costs are increasing rapidly in the change of economic situations 0,06 3 0,18
Food prices are increasing repidly in the change of economic situations 0,07 2 0,14
Wide range of direct and nondirect competitors 0,09 3 0,27
Mc Donald's entrance to coffee market with Mc Coffee with low prices 0,07 2 0,14
Quality of non beverage products (foods) would not be the same in different countries 0,055 3 0,165
Low-barriers for entry in to the market 0,055 1 0,055
total 0,53 1,27
2,665
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IFE ANALYSISStrength weight rate
weighted
ave.
Starbucks is one of the most attractive company for employment 0,05 4 0,2
Starbucks is the leader company in coffee industry from the point of market share andfinancial power 0,11 4 0,44
Reachable even beyond the starbucks shops 0,08 4 0,32
Globaly spreaded stores 0,08 4 0,32
Continuous research and development 0,06 3 0,18
Has a powerful franchising system 0,07 4 0,28
Powerful brand image 0,06 4 0,24
Confortable and relax environment 0,06 3 0,18Cutomer loyalty is high (The starbucks experience) 0,07 4 0,28
total 0,64 2,44
Weakness weight rate
weighted
ave.
They don't have a different international brand 0,06 1 0,06
They don't have market segmentation internationally 0,065 1 0,065
Managerial problems due to large range organisation 0,05 2 0,1
Adaptation to technological innovation is not enough 0,02 2 0,04
They don't have their own coffee farm 0,035 1 0,035
The high percentage of the operations is inside of USA 0,07 2 0,14
Digital and information department has just generated 0,03 2 0,06
They can't attract customers in the evenings as good as they do in day time 0,03 2 0,06
total 0,36 0,56
3
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CPM MATRIX
Starbucks Caribou Coffee Dunkin' Donuts Mc Donald's
Weight Rate Score Rate Score Rate Score Rate Score
Advertising 0,05 2 0,1 1 0,05 1 0,05 4 0,2
Product Quality 0,2 4 0,8 4 0,8 2 0,4 1 0,2
Price
Competitiveness 0,15 2 0,3 1 0,15 3 0,45 4 0,6
Management 0,1 3 0,3 3 0,3 3 0,3 3 0,3
Financial Position 0,1 4 0,4 2 0,2 3 0,3 4 0,4
Customer Loyalty 0,1 4 0,4 3 0,3 3 0,3 2 0,2
Global Expantion 0,2 4 0,8 2 0,4 2 0,4 4 0,8Market Share 0,1 4 0,4 2 0,2 3 0,3 3 0,3
1 3,5 2,4 2,5 3
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SOOPPORTUNITY STRENGTH ACTION
In developing countries, coffee
store culture is rising
Globaly spreaded
stores
Focus on market research in
developing countries and
increase the store number
(franchised or self_owned)at the most rapidly growing
markets
Population increase at Asian-
American and Hispanic segments
Continuous research
and development
Developing new products for
different cultural tastes
(Hispanic, Asian American)
Increasing demand on healthy and
organic foods
Continuous research
and development
Supporting agricultural farms
which has organic farmentrepreneurs
(Festivals, financial support,
sponsorships for exhibitons)
The coffee sales increased by %25
between 2005-2010.
Sales were $18,839 million dolars
in 2010
Has a powerful
franchising system
Focus on giving franchising to
the local big companies
to rapid grow in developing
countries.
The small companies have high risk
for bankruptcy in the industry
Starbucks is the
leader company in
coffee industry
from the point of
market share and
financial power
Chasing opportunities for
profitable horizontal
integration opportunities
SWOT
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WO
OPPORTUNITY WEAKNESS ACTION
In developing countries,coffee store culture is rising
The high percentage of
the operations is inside
of USA
Increase operations indeveloping countries
Increasing demand on
healthy and organic foods
They don't have their
own coffee farm
Backward integration to coffee
farms
to produce organic products
The small companies have
high risk for bankruptcy in
the industry
They don't have market
segmentation
internationally
Horizontal integration for local
coffee chains with their brand
Growing demand for eating
outside
They can't attractcustomers in the
evenings
as good as they do in
day time
Investment on differentrestaurant and coffee
segments
for serving different time of
the day
SWOT
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STTHREATS STRENGTH ACTION
Climate change can play a
huge role in the amount ofcoffee
Continuous researchand development
Backward integration to coffee
farms to produce moreefficiently
Mc Donald's entrance to
coffee market with Mc Coffee
with low prices
Powerful brand image
(cutomer loyalty)
Activities to increase customer
loyalty and to make the people
feel that
they can find their individual
self in Starbucks(Customer cards and database
for interests etc.)
Wide range of direct and
nondirect competitors
Reachable even beyond
the starbucks shops
Increasing Global
Development (Consumer
goods) in Europe
Low-barriers for entry in to
the market
Has a powerful
franchising systema
Attractive payment tables and
credit options for franchisers
(for growing rapidly in the
market by collecting interest of
investors)
SWOT
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WTWEAKNESS THREATS ACTION
Climate change can play a
huge role in the amount of
coffee
They don't have their
own coffee farm
Backward integration to coffee
farms to produce more
efficiently
Wide range of direct and
nondirect competitors
They don't have a
different international
brand,
They don't have market
segmentation
internationally
Generating new brand to focus
on different segments of
customers.
Therefore, there will be aflexible pricing system for
competing
with different competitors
Food prices are increasing
rapidly in the change of
economic situations
Labor costs are increasing
rapidly in the change of
economic situations
Labor costs are increasing
rapidly in the change of
economic situations
Digital and informationdepartment has just
generated Using technological
developments to decrease
labour requirement
(Order systems, etc)Managerial problems
due to large range
organization
SWOT
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SPACE (The Strategic Position and Action Evaluation) Matrix
Internal Strategic Position
Financial Position (FP)
Competitive Position (CP)
comparing company with other companies
External Strategic Position
Industry Position (IP)
Stability Position (SP)
comparing industry with other industries
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Financial Position of Starbucks
Variables Starbucks Sector
Numerical
Value (1-6)
ROI 27,6% 14,16% 6
Leverage
Dept to
equity ratio 12,6% 67,5%
Long term deptto Total Capital
12,6% 79,90%
Liquidity Current Ratio 1,8 1,52 5
Cash Flow Price/cash flow 22,8 12,92 6
Inventory Turnover 6,5 33,12 1
Earnings per share 1,5 3,53 2
Price earnings ratio 33,2 20,73 6
Average 4,33
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Competitive Position of Starbucks
Variables
Numerical
Value
((-1)-(-6))
Market Share
Starbucks is the leader company in coffee
industry (16858 coffee shop in 50 countries) -1Product quality
"The starbucks experience" is the key factor
that distinguist Starbucks from other competitors. -2Customer loyalty
"The starbucks experience" is the key factor that
distinguist Starbucks from other competitors.
-2Control over
suppliers
and distrubitors
Starbucks is the leader company in coffee
industry (16858 coffee shop in 50 countries)-2
-1,75
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Industry Position
Variables
Numerical
Value (1-6)
Growth potential Industry %18 (Analyst estimates) 5Profit Potential
Growing demand for eating outside
In developing countries, coffee storeculture is rising 4
Financial StabilityStability in the economy in USA for 2 years
(No increase in minimum wage) 44,33
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Stability Position
Variables
Numerical
Value((-1)-(-6))
Rate of inflationStability in the economy in USA for 2 years (No
increase in minimum wage) -3Demand variability
Growing demand for eating outside
In developing countries, coffee store culture is rising -4Price range of competing
products
Mc Donald's entrance to coffee market with Mc
Coffee with low prices -5Competitive pressure Wide range of direct and nondirect competitors -4Price elasticity of demand
Mc Donald's entrance to coffee market with Mc
Coffee with low prices -4
Risk involved in business
Growing demand for eating outside
In developing countries, coffee store culture is rising
The coffee sales increased by %25 between 2005-
2010.
Sales were $18,839 million dolars in 2010-1
-3,5
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SPACE MATRIXCalculationsSP Average is -3,5 IP Average is 4,33CP Average is -1,75 FP Average is 4,33Directional Vector Coordinates: x-axis: -1.75 + (+4 .33)= +2,58y-axis: -3,5 + (+4.33) = 0,83
Conclusion Aggressive ProfileA financially strong firm that has achieved major competitive advantages in a growing and stable industryStrategies
Backward,forward,horizontal integration
Backward integration for foods, buying the newly starting hopefull
organizationsMarket penetration
Market development Search for new markets in developing countriesProduct development Launching a new brand and concept for the other hours of the dayDiversification (related or unrelated) Increasing Global Development (Consumer goods) in Europa
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BCG Matrix
Relative Market Share PositionSector Leader 1.0
Industry Sales Growth Rate(In revenue) 11,41%
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BCG Matrix
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IE Matrix
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IE Matrix
The IFE Total Weighted Scores 3 Strong internal position
The EFE Total weighted Scores 2,67 Medium external position
Area IV
GROW AND BUILD
Backward, Forward, or Horizontal
Integration
Market Penetration
Market Development
Product Development
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GSM Matrix
Competitive Position Sector Leader 1
Strong
Competitive
Position
QUADRA
NT 1Market Grow Industry Sales Growth Rate(in revenue)
11,4
1%Rapid Grow
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GSM Matrix
QSPM Matrix
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QSPM Matrix
Key Factors
Investing on Far East
and Middle Asia
Backward integration
to coffee production
Acquire a bar chain for
Increasing Consumer
goods
Opening 100 new
Seattle Coffee
(Kore,China,Kazakhista
n,etc.) with franchising
system with local giant
sfirms
serving different time
of the day (eg: hard
rock Cafe)
to $10 million in 2013
in Europe
shops in USA and 50 in
Europe to compete
with Mc donalds
Threat weight AS TAS AS TAS AS TAS AS TAS AS TAS
Due to the effects of last
economic recession in 2008,
0,07 0 1 0,07 0 4 0,28 4 0,28
the consumers are more
price oriented on eating
outside.
Climate change can play a
huge role0,06 0 4 0,24 1 0,06 0 0in the amount of coffee
Labor costs are increasingrapidly in the
0,06 2 0,12 0 0 0 0
change of economic
situations
Food prices are increasing
rapidly in
0,07 1 0,07 4 0,28 0 0 3 0,21
the change of economic
situations
Wide range of direct and
nondirect competitors 0,09 3 0,27 3 0,27 0 0 4 0,36
Mc Donald's entrance to
coffee
0,07 2 0,14 2 0,14 2 0,14 0 4 0,28
market with Mc Coffee with
low prices
Quality of non beverage
products (foods)
0,055 0 0 0 2 0,11 0
would not be the same in
different countries
Low-barriers for entry in to
the market 0,055 2 0,11 0 0 0 1 0,055
total 0,53
Investing on Far East
d Middl A i A i b h i f I i C d
Opening 100 new Seattle
C ff
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Key Factors
and Middle Asia
Backward integration to
coffee production
Acquire a bar chain for Increasing Consumer goods Coffee
(Kore,China,Kazakhistan
,etc.) with franchising
system with local giant
sfirms
serving different time of the
day (eg: hard rock Cafe)
to $10 million in 2013 in
Europe
shops in USA and 50 in Europe
to compete with Mc donalds
Opportunity
Stability in the economy in USA for2 years
0,07 0 0 3 0,21 3 0,21 3 0,21(No increase in minimum wage)
Population increase at Asian-
American
0,02 0 0 0 0 1 0,02and Hispanic segments in USA
According to the last scientificresearches, "Coffee is a harmful
drink" idea changed oppositely 0,055 2 0,11 0 0 3 0,165 2 0,11
The coffee sales increased by %25
between 2005-2010. Sales were
$18,839 million dolars in 2010 0,08 3 0,24 3 0,24 0 4 0,32 3 0,24
The small companies have high
risk for bankruptcy in the industry 0,055 0 0 0 0 0
In developing countries, coffee
store culture is rising 0,08 4 0,32 3 0,24 0 0 0
Increasing demand on healthy and
organic foods 0,04 2 0,08 1 0,04 0 2 0,08 0
Growing demand for eating
outside 0,07 3 0,21 0 4 0,28 0 3 0,21
total 0,47
TOTAL 1
Investing on Far East and Opening 100 new Seattle
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Key Factors
Investing on Far East and
Middle Asia
Backward integration to coffee
production
Acquire a bar chain for Increasing Consumer goods
Opening 100 new Seattle
Coffee
(Kore,China,Kazakhistan,etc.
) with franchising system
with local giant sfirms
serving different time of the
day (eg: hard rock Cafe)
to $10 million in 2013 in
Europe
shops in USA and 50 in Europe
to compete with Mc donalds
Weakness weight
They don't have a
different international
brand 0,06 0 1 0,06 4 0,24 0 4 0,24
They don't have market
segmentation
internationally 0,065 0 0 4 0,26 0 4 0,26
Managerial problems
due to large range
organisation 0,05 0 0 0 0 0
Adaptation totechnological
innovation is not
enough 0,02 0 0 0 0 0
They don't have their
own coffee farm 0,035 0 4 0,14 0 0 0
The high percentage of
the operations is inside
of USA 0,07 3 0,21 0 0 3 0,21 0
Digital and information
department has just
generated 0,03 0 0 0 0 0
They can't attract
customers in the
evenings as good as
they do in day time 0,03 0 0 4 0,12 0 0
total 0,36
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Key FactorsC
Investing on Far East and
Middle Asia
Backward integration to coffee
production
Acquire a bar chain for Increasing Consumer goods
Opening 100 new Seattle
Coffee
(Kore,China,Kazakhistan,etc.)
with franchising system with
local giant sfirms
serving different time of the
day (eg: hard rock Cafe)
to $10 million in 2013 in
Europe
shops in USA and 50 in Europe
to compete with Mc donalds
Strength weight
Starbucks is one
of the most
attractive
company for
employment 0,05 3 0,15 3 0,15 3 0,15 0 3 0,15
Starbucks is the
leader company
in coffee industry
from the point of
market share and
financial power 0,11 3 0,33 4 0,44 0 4 0,44 3 0,33
Reachable even
beyond thestarbucks shops
0,08 0 3 0,24 1 0,08 4 0,32 0
Globaly spreaded
stores 0,08 2 0,16 0 0 3 0,24 2 0,16
Continuous
research and
development0,06 2 0,12 2 0,12 0 2 0,12 0
Has a powerful
franchising
system 0,07 4 0,28 2 0,14 4 0,28 0 4 0,28Powerful brand
image 0,06 4 0,24 2 0,12 4 0,24 4 0,24 1 0,06
Confortable and
relax
environment 0,06 0 0 4 0,24 0 0
Cutomer loyalty is
high (The
starbucks
experience)0,07 1 0,07 1 0,07 4 0,28 4 0,28 1 0,07
total 0,64TOTAL 1 3,23 3 2,58 3,015 3,525
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CURRENT SITUATION IN 2012
no focus => no effective impact
Supporting the farmers to increase the quality of the coffee beans
Tend to service for different individual demands
Opens new Seattle Coffee shops in USA
In Britain they increased the sales of consumer goodLean operation researches are generated to decrease labor cost
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CONCLUSION
Opening 100 new Seattle Coffeeshops in USA and 50 in Europe to compete withMc Donalds 3,23
Investing on Far East and Middle Asia
(Kore, China, Kazakhistan etc.) with franchisingsystem with local giant firms 3,525
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REFERENCES
Cnbc.com
Forbes.com
Finance.yahoo.com
Starbucks.com
Concept and Cases
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THANK YOU FOR LISTENING
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