Supply chain management – Starbucks example

The process of managing how goods and services progress from concept creation and raw materials to a finished consumer product is known as supply chain management, or SCM for short. It include transportation and storing raw materials, storing finished goods till they sell, and tracking where sold goods move so you may utilize that information … Read more

Why did Starbucks fail in Australia and succeed in China? (proposal)

A Starbucks cafe can be found very easily almost anywhere in the world, except down under i.e. Australia. It entered the Australian market in 2000 and opened nearly 90 stores by 2008. There are hardly any stores after Starbucks decided to close more than 70% of its underperforming cafes. As of now, Australia has close … Read more

Growing importance of Social Marketing – McDonald’s and StarBucks

Social Marketing The phrase social marketing has become a well-established part of the vocabulary of marketing. Businesses and marketers invest a great many of their resources on setting up, upgrading and implementing marketer programmes with two purposes in mind: to help the company to attain its “full profit potential” and to ensure its long-term sustainability. … Read more

Starbucks SWOT analysis

Strengths The Starbucks Company distributes its products through many alternative channels to reach its customers. The company’s products are distributed through domestic and international distributor channels, as well as coffee shops. The domestic distribution channel distributes the products through the grocery stores, wholesale stores, independent retailers and internet retailers. Internationally, the company distributes its products … Read more

Employee’s perception of Starbucks’ company values vs espoused values

Introduction Starbucks is the largest worldwide coffee chain and retailer with 27,000 locations and 238,000 employees. Established in 1971 by Howard Shultz, their values and mission to “inspire and nurture the human spirit, one person, one cup, and one neighbor at a time” continues to promise their customers The Starbucks Experience. This includes a friendly … Read more

Starbucks evaluation, SWOT & PESTEL

Introduction: Starbucks Corporation is an American coffee company and coffeehouse chain. The chain was founded in Seattle,Washington in 1971, it operates 23,450 locations worldwide, including 12,937 in the United States, 2,118 in China, 1,430 in Canada, 1,158 in Japan and 869 in the United Kingdom (Differences reflect growth since December 17, 2015) Starbucks locations serve … Read more

Starbucks SWOT Analysis

Starbucks Corporation Strengths: Starbucks is No. 1 specialty coffee retailer of – in terms of market share and market capitalization. (1997, £4596.6 million and sales growth 20.9%)[1] It is a global organisation with 16,000 coffee shops in 15 countries world-wide.[2] Strong brand image associated with high quality coffee and excellent customer service – “The Starbucks … Read more

Strategy on market segmentation targeting and positioning of Starbucks

A BRIEF REPORT ON: Starbucks Strategy on Market Segmentation Targeting and Positioning with the Marketing Mix 1.0 Introduction: The Starbucks Corporation was founded by three entrepreneurs at the place called Seattle in 1971. Initially they were selling of whole bean coffee in one Seattle store and by the year 1982 the business had grown tremendously and has … Read more

Starbucks analysis

Introduction to Starbucks In 1971, Starbucks was established in America as a coffee brand in the market. They produce the hand made coffee such as espresso and many hot/cold drink for consumers. They also provide some deserts for customers.Nowadays, they have over 21300 chains over the whole world. They promise consumers only use the top … Read more

About Starbucks

ANALYSIS:

Starbucks is a US based coffee house with a total of 32,050 stores worldwide. The organization had to close its cafes in both the United States and Canada reducing the services to online delivery and drive thru. This had a major impact on the over all performance of the chain reducing its earnings roughly in half.

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ECONOMIC:

Just like other businesses Starbucks is also affected gravely by the novel Corona virus. The company confirmed that its sales in the US were not affected by the virus, which account for 65 percent of consolidated revenue in the first quarter. However, the brand confirmed that the sales were down by 78 percent, as they had to close 80 percent of its Chinese units in February. The company is expecting a $400 million to $430 million drop in the revenue as compared to the previous projections.

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COMPETITIVE/GLOBAL:

Many industries are heavily dependent on China for due its increasing and progressive economy. Analysts initially compared COVID-19 with the 2002-03 SARS epidemic, however it is misleading. The reason is the tremendous growth in the Chinese economy in the past 18 years. As compared to the rest if the world China doubled its share of trade in these years. Therefore, almost every Fortune 1000 company is experiencing disruptions in their business. Economists have estimated that there could be a loss of $1.1 trillion in the global economy. Starbucks plans to open about 90 percent of company-owned US stores by early June. As of April 28th, company had opened 95% of its stores in china with reduced hours and is seeing similar improvements in the South Korean market.

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POLITICAL:

The pandemic has affected the political and situation of every country across the globe. The countries took various measures such as complete lockdown to prevent the spread of the virus. Many countries such as China and India had a complete lockdown, wherein none of the non-essential businesses could operate. There were restrictions on the functioning of essential businesses as well. In US and Canada, non-essential businesses were temporarily closed leading to a lot of workers being laid off. The countries are gradually lifting the restrictions hence providing serious measures to operate. Starbucks Canada plans to reopen as many stores as possible by the end of May, 2020. The stores that were open during helped the company to refine and test new operating models specifically for the social-distancing environment.

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SOCIETAL:

Several organizations and people have donated to the COVID-19 relief funds to help those in need. Starbucks Canada and The Starbucks Foundation donated $1 million in food and financial support for the foodbanks and community outreach organizations. The organization has also donated $3 million to the UN foundation, Give2Asia and local grants in the US and Canada. Along with that the company announced in the month on March that it will pay its employees for April, even if they decide to stay home. The company made sure to increase benefits and wage rate for its employees. In response to the global health crises Starbucks Canada reached out to the front-line workers with free coffee.

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ENVIRONMENTAL:

To protect the employees and customers Starbucks have modified their operations, they have increased cleaning and sanitizing practices along with the extended catastrophe pay for the employees impacted by COVID-19. To practice social-distancing measures the company has removed all seating arrangements from the stores and have temporarily closed the stores in high-social gathering locations, such as malls and universities.

The hours of operations have also been reduced at multiple stores. The brand is taking additional precautions by providing facial coverings and gloves to all the employees, and by running a pre-temperature check to ensure they are able to work. They have increased the digital ordering and Grab-and-go services for the convenience of the customers.

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