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Starbucks Executive Conclusion Company Mission

As "to inspire and nurture the individual spirit - one individual, one glass and one area at the same time. " (Starbuck, n. d. ) Starbucks objective statement. The business has the principle and concerns all stakeholders including their suppliers, employees which recognized as "partners", customers, communities, shareholders and even environment. Beginning with their products itself (beans, tea, cocoa), they're ardent to get the finest sources, finest process of products with enhancing the quality of life of the farmers. With the sensation of partners, all employees treat with esteem and pride, also the proposal with customers and sense of individual associations by the friendly and warming stores' atmosphere to earn their royalty and trust, duties and contribution to neighborhoods and public, and one of the important missions is environmental friendly these make them "Starbuck" as a head for changes and new standards.

Business strategy

Forward thinking and nimble in decision making

A full-fledge transformation

Blueprint for change was the transformation agenda

Store-level economics and procedure efficiency; reigniting psychological connection with customers; and realigning Starbucks firm for the permanent (Schultz, 2009)

Focused on:

Operation brilliance from Supply-chain to Backend IT system on store-level operation for better knowledgeable decision

Go to the marketplace engine motor; more efficiency channel to reach customer

Those to bring products and effort to market faster and even more cost efficiency

But it's not enough, true change is to improve customer experience by innovate and differentiate.

New investment to associates (Store and worker) to improve customer experience including better services, quality of beverages, store environment

New program for royalty card program

Customer concern Healthy food choices, Starbuck offer services with wholegrain and remove man-made trans-fat, high-fructose corn syrup, manufactured flavors and dyes

Use technology to improve customer communication; interpersonal network and digital marketing. Starbucks voted because so many employed brand with Facebook (Social network).

Also release iPhone program to help customer finding store location, determine diet information or royalty greeting card program

New idea store design with Seattle, London and Paris plan.

All new structure stores will be authorized with environment friendly

Become the world major buyer of Rational trade certified caffeine and spouse with Conservation international to address climate change

International Strategy:

Focus on potential market UK, Canada and Japan and working on China which believe that China will be one of the greatest market segments outside US.

Seize new opportunity by circulation grocery channel to reach customer.

New product Starbucks VIA Ready Brew as instant espresso for single serve at home and takeaway option from the store that'll be distribute on the store and food route in international market in fiscal yr 2010

New branding Seattle's Best Espresso (SBC) as new position and focus for clients that plan to create franchising and syndication opportunities in 2010

Global Responsibility strategy:

Financial record rearrange reason behind internal management positioning: Previously business reported into 3 sections; US market, international market and Global Consumer Product Group (CPG), the US will be reported in CPG.

Company-operated shop strategy: increase market show by available new additional stores in existing market, new market, increasing sales in existing stores

Specialty functions; Licensing - retail store, Licensing - packed coffee and tea, Licensing - Branded products (ready to drink or bottle beverage

Industry Structure

Primary competitor: String fast-food, specialty coffee shop

Wholesale and email order distributor in area of expertise product; packaged and instant (soluble) caffeine)

SWOT Analysis

Starbucks revenue increased slowly but surely in 2008 and online profit fell significantly. The progress rate began to be negative the first time in 2008 since 1997. (Pascal J. Gambardella, 2009)

One of the reason why may come from the overall economy tough economy that reduced customer spending but in the same period some company such as McDonald's sale increased which can be assumed that customer finding for some value for the spending from the less income.

Secondly, Starbuck strategy of fast store extending especially in U. S. market segments that nearly every a area in the big city got Starbuck store has to find more customer to keep up with new exposed store. So in 2008 and Jan 2009, Starbuck possessed finished around 800 stores in U. S. and 100 stores internationally.

Another reason was from increased competitor in coffee-house business and new competition from fast food chain restaurant; McDonald and Dunkin's Donuts that have large number of stores and existing customers given kinds value or current economic climate meals and drinks. Even Starbucks tried to provide hot breakfast time but finally had to stop by the customers' complaint of smell detraction from coffee house environment.

4. 1. ) Strengths

4. 2. ) Weaknesses

4. 3. ) Opportunities

4. 4. ) Threats

Core competencies and competitive advantage

Strategy recommendations

New distribution channel in drive-thru stores

Package instant caffeine in stores, grocery store, discount store

New business spouse to contend with string Fast-food (McDonald), such as Burger King (Hungry Jack), Subway

Provide more variety of products, menus; meals, warm food or even equipment, accessories and caffeine making machine in some large space store

Research and Development: increase or focused more in survey and research to find out new innovation or differentiation from existing customers and potential customers

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