Carlos Monsanto
Assignment No. 1
CS 782
1) Business Model
Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000 employees across 19,767 company operated & licensed stores in 62 countries. Their product mix includes roasted and handcrafted highquality/ premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts.1 Starbucks also markets its products mix with other brand names within its portfolio of companies,
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This is the main socio-cultural challenge that the start-up faces. It will expand consumer base to include the buyers from the lower and the middle-income tiers.
The “green” and “ethical chic” consumers are also concerning. They fret about social and environmental costs of the brands. Starbucks has to be aware of this trend.
The baby boomer generation is retiring. This means spending by older consumers will decrease. Now, Starbucks will have to tap the Gen X and the Millennials as customers.
Other socio-cultural factors to focus on are:
* Changing family patterns in USA and Europe * Consumer preferences * Changing work patterns * Changes in lifestyles of population * The level of education of the population in local markets * Changing values among population 2.4) Impacts of Technological Factors on Starbucks
Starbucks is in a good position to enjoy benefits of the emerging mobile wave. Its partnership with Apple to bring app based discount coupons is helping it ride the mobile wave easily.
The company introduced Wi-Fi capabilities in its outlets already. Internet is important to the consumers. They can now surf
The Starbucks Corporation is an international coffee company that was founded in Seattle, Washington (Starbucks.com). With 19,435 stores in 58 countries, it is the largest coffeehouse chain company in the world; Starbucks sells a variety of hot and cold drinks. These include espresso
The “green” and “ethical chic” consumers are also concerning. They fret about social and environmental costs of the brands. Starbucks has to be aware of this trend.
Starbucks is a worldwide coffee retail chain that spends significant time in coffee and other related refreshments. The organization prepares and sells meals, coffee, tea drinks and an assortment of new sustainable products, through stores. The organization likewise licenses its trademark through different channels, for example, authorized stores, basic need and national foodservice accounts.
Starbucks was founded in 1985 and is a global leader in premium coffee with locations in 68 countries. The company 's stock is traded on the NASDAQ under the symbol "SBUX". They sell packaged coffee and tea, as well as handmade beverages that include coffee and tea. In addition to coffee beverages, they sell pre-packaged food items such as sandwiches and snacks. Their products are not only sold in their own stores, but also in grocery stores. Along with the flagship brand, Starbucks has additional brands: "Teavana, Tazo, Seattle 's Best Coffee, Evolution Fresh, La Boulange and Ethos" (Starbucks Annual Report, 2015, p. 2).
Evolving customer base: Starbucks’ newer customers tended to be younger, less well-educated, and in a lower income bracket than Starbucks’ more established customers.
The greatest threat of them all at this particular moment for Starbucks, or any other company for that matter, is the global economy crisis. In particular the source of the crisis, this lays in its home country the U.S. So if more than ¾ of the companies growth is depended on the U.S. then the
The situation today is continuing to get more and more challenging. Many of the core customers Starbucks relied on so much as it was growing are now becoming more and more cynical with the brand image and reputation. To these local coffee shop goers, the
The primary use for this encouragement is for preserving the woods. Founded on research, Americans drink 100 billion cups of chocolate per year. At least 14.4 billion are served in disposable paper cups. Most of their paper cups are un-recyclable due to the plastic lining inside the cup. Aims for Starbucks by 2015 are they launch 100% recyclable cup and their coffee must be 100% ethically sourced. The causes they promote good ethics are portraying a serious public image of the company and want to protect image as being a socially responsible governance and a good option for consumers. Other than that, Starbucks wants to increase focus on ethical and moral issues in business generally. In addition, Starbucks makes it a priority to always pay coffee farmers proper wages for the chocolate that they produce. They even travel as far as buying all the coffee that one specific farmer can bring forth to make a coffee unique and exclusive to Starbucks. Non only does Starbucks work with the coffee farmers that they are purchasing from, but they also play with the local governments to ensure fair treatments, and social conditions. They suffer with these governments frequently to ask for aid to be socially responsible. In return, Starbucks does their best to help them by building schools and education programs. According to the individualism theory Starbucks would be considered ethical because
needs. Starbucks has been constantly introducing new product such as VIA flavored coffees. They also
The "green" and "moral chic" purchasers are likewise concerning. They worry about social and ecological expenses of the brands. Starbucks must know about this pattern.
The Starbucks Company is a purveyor of gourmet coffee that was founded in 1971 at Seattle’s Pike Place Market (Retrieved March 10, 2015, from http://www.starbucks.com/about-us/company-information). At that time Starbucks was a single storefront that offered premium, fresh roasted whole bean coffees. Since opening that single store Starbucks has grown to an international presence with branding that is recognizable worldwide. In addition, Starbucks has increased their product line beyond hot and cold coffee beverages to include hot and cold teas, packaged whole bean and ground coffees, high quality, fresh foods and coffee making equipment and supplies. Starbucks operates a total of 19,767 company operated and licensed stores and operates in 62 countries. In addition to the Starbucks’ brand the company also owns and operates other well-known brands such as Teavana and Seattle’s Best Coffee. (Retrieved March 10, 2015, from http://news.starbucks.com/uploads/documents/Starbucks_Fiscal_2013_Annual_Report_-_FINAL.PDF)
Despite or because of its ubiquity in nearly every city in America, Starbucks is currently facing an existential crisis. On one hand, it began as a relatively democratic company, with a green image. All Starbucks workers, even part-time employees receive benefits. Starbucks brought the coffeehouse experience of Europe to the United States in an accessible manner. However, its success, relatively high prices, and market-saturation strategy has provoked hostility in the young, hip, urban (or urban-identified) demographic that makes up the core of its consumer base.
Seattle based, Starbucks Corporation is the leading coffeehouse chain in the world. The company has its operations in more than 44 countries. The main products offered by Starbucks various kinds of drinks, snacks, coffee beans. The company also operates in the field of marketing of music, books (The Company, 2008).
Starbucks is one of the largest known coffee distributors within the United States. Their mission statement is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Their objective is to be one of the most well known and respected brands around the world. With 21,366 stores around the world, operating in 65 countries, they are a major company that has influence on the economy in the United States and around the world (Starbucks 2015).