The first Starbucks opened in Seattle, Washington, on March 30, 1971, By three partners who met while they were students at the University of San Francisco  English teacher Jerry Baldwin History teacher Zev Siegl, and Writer Gordon Bowker The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans.

2. STRATEGIC MANAGEMENT
PRESENTED BY:
•RIFAT HUMAYUN
•QURAT UL AIN
•AMARA SABIR
PREPARED BY: RIFAT HUMAYUN
CASE STUDY ON STARBUCKS
COFFEE RESTURANT

3. MISSION STATEMENT
“To inspire and nurture the
human spirit— one person, one
cup, and one neighborhood at a
time.”

4. PRESIDENT
Howard Schultz
•Chairman, president and chief executive officer of Starbucks,
first walked into Starbucks in Seattle’s Pike Place Market in
1981.
• Howard was invited into conversation with these experts who
took great care in not only finding and roasting the highest
quality coffee, but also sharing their passion with others.
•Howard has been recognized for his passion, his leadership, and
his efforts to strengthen communities.
•Howard was named Fortune’s 2011 Businessperson of the year
for delivering record financial returns for the company while
leading an effort to spur job creation in the U.S.

5. OUR VALUES
• Company elaborates six guiding principles:
• Our Coffee
• Our Partners
• Our Customers
• Our Stores
• Our Neighborhood
• Our Shareholders

6. HISTORY
• The first Starbucks opened in Seattle, Washington, on
March 30, 1971,
• By three partners who met while they were students
at the University of San Francisco
• English teacher Jerry Baldwin
• History teacher Zev Siegl, and
• Writer Gordon Bowker
• The three were inspired to sell high-quality coffee
beans and equipment by coffee roasting
entrepreneur Alfred Peet after he taught them his
style of roasting beans.

7. • Originally the company was to be called Pequod, after
a whaling ship from Moby-Dick, but this name was rejected by
some of the co-founders. The company was instead named after
the chief mate on the Pequod, Starbuck.
• A popular book “Pour Your Heart Into It: How Starbucks Built
a Company One Cup at a Time” authored by Starbucks Coffee
Chairman and CEO Howard Schultz (2012) is one of the most
comprehensive sources about the business strategy of the
company.

8. • In the next 10 years, the business expanded to five stores and
hired Howard Schultz to manage retail sales and marketing.
• By 1993 the company ventured into the East Coast market in
Washington, D.C., and entered into a venture with Barnes &
Noble to sell its coffee at the bookseller’s stores.
• At this point, the company had licensed 12 stores and was
operating 260 company-owned facilities with revenues reaching
$176.5 million and net earnings at $8.3 million.

9. • Starbucks opened 200 new stores outside of the United States
during 2000, 150 of which were in the Asia-Pacific region, and
opened its first stores in Dubai and Hong Kong.
• And its 100th stores in both Japan and the United Kingdom.
• The following year, Starbucks opened a store in Zurich,
Switzerland, marking its first venture into continental Europe.

10. FINANCIAL CRISIS
• Starbucks experienced its first setback in 2002 when its
Japanese operation posted a $3.9 million loss, despite a 15
percent increase in revenues and 108 new store openings,
• And the first low performance locations were closed. But not
discouraged by this, international expansion continued as
Starbucks opened its first store in Turkey.
• Acquired 129 Seattle’s Best Coffee coffeehouses, as well as
certain wholesale distribution rights.
• In the following two years, its long-term U.S. expansion goal
was set at 50 percent and Starbucks announced it will
eventually open 15,000 domestic outlets.

11. LICENSED STORE
•Create a community-gathering place for Starbucks core
customers while on the road, at work and at play
•Offer the handcrafted espresso and blended beverages
consumers love and crave
•Offer high-quality, great-tasting food items that create perfect
pairings and can increase ticket averages
•Take advantage of continuous product and operational
innovation

12. GRAPH SHOWING THE GROWTH IN THE NUMBER OF
STARBUCKS STORES BETWEEN 1971 AND 2011

13. FINANCIAL POSITION

14. MARKETING SEGMENTS
• Starbucks has three reportable operating segments:
• United States
• International
• Global Consumer Products (CPG).

21. PRODUCT LINE
Coffee: More than 30 blends and single-origin premium
Arabica coffees.
Handcrafted beverages: Fresh-brewed coffee, hot and iced
espresso beverages, coffee and non-coffee blended
beverages, Vivanno smoothies and Tazo teas.
Merchandise: Coffee and tea brewing equipment, mugs and
accessories, packaged goods, music, books and gift items.
Fresh Food: Baked-pastries, sandwiches, salad, oatmeal,
fruit-cups.

22. CURRENT POSITION
• American global coffee company and coffeehouse
chain based in Seattle, Washington.
• Now it has 20,737 stores in 65 countries and territories,
including 11,910 in the United States
• 1,496 in China
• 1,442 in Canada
• 1,052 in Japan
• 772 in United Kingdom

23. LOCATION
• Egypt Oman Austria
• Qatar South Korea Norway
• Morocco Brazil Turkey
• New Zealand Indonesia Ireland
• Australia Japan UAE
• Canada Jordan UK
• Dubai Germany
• Oman France
• Denmark Cyprus
• Finland Hong Kong
• Greece India
• Saudi Arabia Indonesia

24. COMPANY FACILITIES
• Starbucks also provides electrical outlets and, in some stores,
wireless access, for customers who might need to use their
MP3 players or laptop computers. Additionally, they have
introduced the Starbucks’ card with the hope of strengthening
customer loyalty by improving service
• Starbucks’ products can be found in convenience stores,
grocery stores, department stores, movie theaters, businesses,
schools, and even airports.
• Starbucks also encourages the use of its Web site where
customers are able to register their Starbucks’ cards, receive
nutritional information about Starbucks’ products, shop
online, search for careers, and much more.

25. ADVERTISING
• Starbucks relies more on its image advertising than
traditional advertising.
• Part of that image is how the customer not only
views the retail outlet but how responsible the
company is to their communities and employees.

26. COMPETITORS OF STARBUCKS COFFEE
• Dunkin’ Donuts
• Caribou Coffee
• Peet’s Coffee and Tea
• McDonald’s (MCD)
• Krispy Kreme Doughnuts (KKD)

27. PEST ANALYSIS
POLITICAL
• Industry-specific rules and regulations
• The level of relationships between USA
and countries that produce coffee beans
• The level of political stability within a
country
ECONOMIC
• Buying power of consumers
• Local currency exchange rates
• Local economic environment within
each market Starbucks operates
• Taxation level
Political
Environmental
Technologi
cal
Economi
cal
Social
Legal

28. SOCIAL
• Changing family patterns in USA and Europe
• Consumer preferences
• Changing work patterns
• Changes in lifestyles of population
• The level of education of population in local
markets
• Changing values among population
• Ethical Sourcing
TECHNOLOGICAL
• Emergence of innovative technology
• Biotechnological developments
• Developments in agriculture
Political
Environmental
Technological
Economical
Social
Legal

29. ENVIRONMENTAL
 Recycling
 Energy
 Water
LEGAL
 Employment law
 Health and safety regulations
 Consumer protection

30. SWOT ANALYSIS
STRENGTHS
• Strong Market Position and Global Brand Recognition
•Products of the Highest Quality
•Location and Aesthetic appeal of its Store
•Human Resource Management
• Goodwill among consumers due to Social Responsibly
Initiatives
•Diverse Product Mix
•Use of Technology and Mobile Outlets
•Customer base loyalty
WEAKNESS
• Expensive Products
• Self-Cannibalization through overcrowding
• Overdependence in the United States market
• Negative large corporation image
• American/European coffee culture clash with that of
other countries.

31. OPPORTUNITIES
• Expansion into Emerging Markets
• Expanding Product mix and offerings
• Expansion of retail operations
• Technological advances
• New distribution channels
• Brand extension
THREATS
• Increased Competition
• Price Volatility in the Global Coffee Market
• Developed Countries Market Saturation
• Developed Countries Economy
• Changing Consumer tastes and lifestyle choices

32. CORPORATE SOCIAL RESPONSIBILITIES
• To develop strong, long-term relationships with farmers to
ensure that we buy the high-quality coffee our customers
expect.
• By 2015, our coffee will be grown using ethical trading and
responsible growing practices.
• By 2015, 100% cups will be reusable or recyclable and reduce
environmental footprint through energy and water conservation,
recycling and green conservation.
• Believe in being involved in the communities, part of-bringing
people together, inspiring change and making a difference in
peoples’ lives.
• By 2015, plan to contribute one million volunteers hours each
year to our communities.

33. • Starbucks focuses its efforts on improving social and economic
conditions for coffee farmers; minimizing environmental impact;
making a positive contribution in the communities where they do
business; and providing a great work environment for their partners
(employees).
• Establish the Starbucks Foundation in 1997.
• A major contributor of CARE, worldwide relief and development
organization (Health, Education, and Humanitarian aid)
• Provides financial support to community literacy organizations.
• Participate in local charitable projects.
• 2004 Enviro Stars Recognized Leader Award – for its community
service and environmental activities

34. STARBUCKS STRATEGIES
• Rapid store expansion
• Product line
• Coffee purchasing strategy
• Employee training and recognition
• Real Estate, store design, Planning and Construction
• Maximize market penetration
• Offer high quality products
• Provide relaxing attractive social atmosphere.

35. LOGO
• Original brown logo, used from 1971–1987.
• Green logo used from 1992–2011, still being used as a
secondary logo.
• Redesigned logo used from 2011–present.
logo is an image of a twin-tailed mermaid, or
siren as she's known in Greek mythology

36. RECOMMENDATIONS
• Starbucks biggest growth is in its International segment.
• The emerging markets of Brazil, India, China, South Africa and
Mexico with a growing middle-class population continue to offer
significant opportunities to add new stores and serve more customers.
• Starbucks has great growth opportunities in Tea and Fresh Juice
products mix. They should build up these products along the same line
of their core coffee products.
• Consumer tastes and lifestyle shift towards more snacks and beverages
options, Starbucks should tailor its menu’s and expand to give more
healthy product offerings in its mix.
• Starbucks make significant investments in advertising and marketing
initiatives in the face of increased competition in the market.
• Integrating Starbucks loyalty program with the mobile application.