2. Starbucks began as a single store in
1971 in Seattle’s historic Pike Place
Market. The name inspired by the
classic American novel “MOBY DICK”,
Starbucks has since then offered
some of the world’s finest fresh-roasted
whole bean coffees and strives to do
business responsibly with its customers
and communities. And today with more
than 17000 stores in 57 countries,
Starbucks is the largest coffeehouse
company in the world

4. Their coffeehouses have become a beacon for coffee lovers everywhere.
They can count on genuine service, an inviting atmosphere and a
superb cup of expertly roasted and richly brewed coffee every time.

5. The keystone value in the effort “to build a
Company with soul” was that the company
would never stop pursuing the perfect cup
of coffee.
If a customer wanted hazelnut-flavored
coffee, Starbucks would provide it by
adding hazelnut syrup to the drink rather
than by adding hazelnut flavoring to the
beans during roasting.

7. Our mission: to inspire and
nurture the human spirit – one
person, one cup and one
neighborhood at a time.
Starbucks' mission to "inspire the
human spirit,"
is a something that can be served in a
cup with whipped cream.

8. To accomplish its mission, Starbucks has principles that guide all of
its employees as they go about their daily business. They say:
Their Coffee – It has always been, and will always be, about quality.
Their Partners – They always treat each other with respect and dignity.
And hold each other to that standard.
Their Customers – When they are fully engaged, they connect with, laugh
with, and uplift the lives of their customers – even if just for a few
moments.
Their Stores – It’s about enjoyment at the speed of life – sometimes
slow and savored, sometimes faster. Always full of humanity.
Their Neighborhood – We can be a force for positive action – bringing
together our partners, customers, and the community to contribute
every day.
Their Shareholders - They are fully accountable to get each of these
elements right so that Starbucks – and everyone it touches – can
endure and thrive

10. Starbucks vision was to become a national company
with values and guiding principles that employees
could be proud of.

11. They further defined their vision for enhancing customer
experience through In-store digital network. The
Starbucks digital network would give Starbucks
customers’ free access to digital content.

12. Strategic goal
Contribute 1
million
volunteer hours
each year to
All their coffee their
would be grown communities.
using ethical
trading and
responsible
100% of their growing
cups will be practices.
recyclable
By
2015

13. ORGANIZATIONAL CHART
CEO
CIO, executive CFO and Global
vice president Supply chain Human International
MARKETIN ADMINISTRATI Resource development
and general ON operations president.
G
manager of digital
ventures
Development
Coffee and and greater
Partner China
Global resources
Senior vice procurement, se
president, F (HR), U.S
nior vice RETAIL
Senior vice inance president
president, gene International
ral manager development
Support
development

14. HUMAN RESOURCE MANAGEMENT
The theme was "just say yes" to
customer requests. Employees were
trained to go out of
their way, taking heroic measures if
necessary, to make sure customers
were fully satisfied.
Employees are encouraged to speak their
minds without fear of retribution
from upper management—senior executives
wanted employees to be vocal.
They wanted employees to contribute to the
process of making Starbucks a better
company.

15. Employees are given good compensation and a comprehensive benefits
package. Sharing the company’s success with the people who made it
happen helped everyone think and act like an owner, build positive long-
term relationships with customers, and do things efficiently.
Howard Schultz’s rationale was that if you treat your
employees well, they will treat your customers well.

16. SWOT ANALYSIS

18. 1.Profitability 6.Starbucks’
: Starbucks is 2.Global 4. Joint “leave no one
coffee brand: 3.CSR behind”
a very ventures and
profitable Starbucks is a has built 5.Product
partnerships diversificatio
EAP(Employee
business with global retailer valuable with different assistance
total revenues for brand goodwill for the n: 1.The program)
companies 2003 sales
for 2011 specialty company. like: “Bean Stock”-
showing a coffee with mix includes option to buy
1.Ethos Water 1.Dreyer’s 78%
12% increase more than Starbucks stock
17018 retail 2.Product Red Grand Ice beverages, 1 at discount
Global store stores in 50 goods cream 2% food “Future Roast”
sales countries. items, 5% 401k retirement
3.Starbucks 2.Kraft
increased by whole bean savings plan
Their logo is Foundation Foods, Inc.
8% and coffee and Full health care
EPS(earning easily 4.New Orleans 3.PepsiCo, Inc. benefits for all
5% coffee
per share) identifiable reconstruction employees
4.Barnes and making
increased by just like project Nobles equipment Low employee
33% McDonalds or turnover and
5.National 5.Hyatt Hotels and
Coca-Cola. 85% employee
Economies of Recycling Works Corp. And accessories. .
Starbucks satisfaction
scale award in US in others... according to a
Experience 2005 survey ”
.

20. Emerging international
markets like
India, China, Brazil, Turkey,
Malaysia
The spread of democracy
and democratic policies
around the world
Technological
advancements
Starbucks has the
opportunity to partner with
other companies to
increase sales, like it has
done in the past

21. The world is still facing recession
so consumers are turning away from
luxury products like Starbucks to
cheaper alternatives
The rise in the costs of coffee and
dairy products
Consumers’ trend towards more
healthy caffeine free ways…
 Starbucks’ main competitors :
Second Cup(Canadian franchiser)
Caribou Coffee
McDonalds McCafe
Costa Coffee
Local coffee shops

22. PORTERS 5 FORCES MODEL

23.  There is intense competition in the coffee market amongst established coffee shops
that are fighting to get customers. There are local coffee shops offering specials to
lure potential customers in. Coffee shops are investing more money in research and
development to create new flavors to maintain and attract new customers
 Other coffee chains. Examples include Coffee Bean & Tea Leaf, Gloria Jeans
Coffee, Peet’s and San Francisco Coffee House
 Smaller privately owned coffee houses
Secondary coffee providers. Examples include McDonalds, Burger King, Dunkin
Donuts

24.  Fair trades. It means the coffee farmers will
be paid fairly.
Increasing number of specialty coffee
buyers.
Supply and price can be affected by multiple
factors in the producing country, like
weather, political and economic conditions.
There is more bargaining power for suppliers
of technological inventions such as automated
coffee machines, latte and espresso machines
because there are not as many suppliers for
these equipments.

25.  In the past, buyers did not really have bargaining power when it came to
premium coffee such as Starbucks. The sheer scale of Starbucks’ business
reduces the bargaining power of any single group of buyers.
 With newer entrants and competitors such as McDonalds who claim to offer
premium roast coffee of reasonable quality for lower price and also Dunkin Donuts
buyers now have slightly more bargaining power than they’ve had in the past.

26. The entry barrier for the coffee industry is relatively low,
even for premium coffee like Starbucks.
Any large and well-funded company where
capital is not a problem could be potential entrants.
Some of the more current and ongoing threats of new entrants
include fast food chains such as McDonalds,
Burger King and Dunkin Donuts.

27. Substitutes(products)
 Other beverages apart from Starbucks coffee and tea – Examples
include soda, fruit juice, smoothies, water, beer , chewing gum and other drinks.
Other “quick‐grab” foods apart from pastries, muffins, doughnuts, etc
sold at Starbucks. Examples include burgers, burritos, tacos, sushi, snack food
Substitutes (Environment/Ambience)
Lower‐end or “less luxurious” coffee places
 Places that offer people a place to hang out, chat, relax or even work.
Examples include tea houses, fast food places, ice‐cream parlors, side‐walk
cafes, and bars and pubs .