Starbucks Essay

1987 words - 8 pages

Case abstract
Starbucks was founded in Seattle in1971 as roaster and retailer of whole bean and ground coffee, tea and spices in a single store in Seattle’s Pike Place Market. It was named after the first mate in Herman Melville’s Moby Dick. It was incorporated under the law of the State of Washington in Olympia, Washington, on November 4,1985. It went public on June 26,1992 at a price of $17 per share and closed trading that first day at $21.50 per share. In 2011, Starbucks unveiled an alliance with India’s flagship conglomerate ,Tata Group. This alliance is to raise the profile and use of Indian premium Arabica beans in Starbucks stores elsewhere.
Nowadays, Starbucks has become the ...view middle of the document...

Vision statement
“ Starbucks is committed to ethically sourcing and roasting the highest quality Arabica coffee in the world”
Mission statement
“ To inspire and nurture the human spirit- one person, one cup and one neighborhood at a time”
Objective
The delivery of the best coffee available

External Audit
Opportunities
1) Has an ongoing investment
2) Expansion in single serve coffee market
3) Increasing in single serve coffee sales
4) Increasing in number of customers drinking coffee
5) Mobile payment plan
6) Expansion VIA abroad
7) Increasing in shares
8) Increasing in revenue
9) Acquisition of full ownership of its retail operations in Switzerland and Austria
10) Expansion its coffee line in US
11) Unveiled alliance with India’s flagship conglomerate
Threats
1) Recession
2) Criticism from environmentalist group about dipper well
3) Competition
4) Criticism by environmental experts for pouring millions of gallons of water down the drain
5) Decline in margins
Competitive Profile Matrix ( CPM)
Competitive Profile Matrix (CPM) |
  | Starbucks Corporation | Dunkin' Brands Inc |
Critical Success Factors | Weight | Rating | Score | Rating | Score |
Advertising | 0.10 | 3 | 0.30 | 3 | 0.30 |
Market Penetration | 0.10 | 4 | 0.40 | 4 | 0.40 |
Customer Service | 0.10 | 4 | 0.40 | 4 | 0.40 |
Store Locations | 0.10 | 4 | 0.40 | 4 | 0.40 |
Employee Dedication | 0.11 | 4 | 0.44 | 4 | 0.44 |
Financial Profit | 0.10 | 3 | 0.30 | 4 | 0.40 |
Customer Loyalty | 0.10 | 3 | 0.30 | 4 | 0.40 |
Market Share | 0.04 | 2 | 0.08 | 2 | 0.08 |
Product Quality | 0.15 | 4 | 0.60 | 4 | 0.60 |
Top Management | 0.01 | 1 | 0.01 | 3 | 0.03 |
Price Competitiveness | 0.09 | 3 | 0.27 | 4 | 0.36 |
Totals | 1.00 |   | 3.5 |   | 3.81 |

External Factor Evaluation (EFE) Matrix
External Factor Evaluation Matrix (EFE) |   |   |   |
Opportunities | Weight | Rating | Weighted Score |
Has an ongoing investment | 0.05 | 4 | 0.20 |
Expansion in single serve coffee market | 0.08 | 4 | 0.32 |
Increasing in number of customers drinking coffee | 0.09 | 3 | 0.27 |
Mobile payment plan | 0.15 | 4 | 0.60 |
Expansion VIA abroad | 0.10 | 4 | 0.40 |
Unveiled alliance with India’s flagship conglomerate | 0.10 | 3 | 0.30 |
| | | |
Threats | Weight | Rating | Weighted Score |
Recession | 0.10 | 4 | 0.40 |
Criticism from environmentalist group about dipper well | 0.10 | 4 | 0.40 |
Competition | 0.10 | 4 | 0.40 |
Criticism by environmental experts for pouring millions of gallons of water down the drain | 0.08 | 4 | 0.32 |
Decline in margins | 0.05 | 4 | 0.20 |
TOTALS | 1.00 |   | 3.81 |

Internal audit
Strengths
1) Offers 100% Fair Trade Certified whole bean coffee from Rwanda as a limited edition coffee
2) Sells related merchandise(home espresso machine, coffee brewers & grinders, coffee mugs, etc)
3) Starbucks coffee will now be...

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