Starbucks mission

1. What is Starbucks mission statement?

2. Mention at least 3 history highlights for the company

3. Compare the original Value Chain wth the new value chain (why did it change?)

4. Analyse and interpet the Boston Matrix for Starbucks products?

5. Explain Starbucks strategy according to Porters model.

6. According to the SWOT analysis what are Starbuck's strenghts, weaknesses, opportunities and threats? (mention at least 3)

7. Using the information available in the SWOT analysis develop a TOWS matrix, designing at least 3 strategies for each quadrant.

1. What is Starbucks mission statement?

Their mission statement from the company profile is as follows:

“Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”

2. Mention at least 3 history highlights for the company:

• The first Starbucks location opened in 1971. The name is inspired by Moby Dick’s first mate.

• In 1981, current CEO Howard Schultz, recognized a great opportunity and began working with the founder Jerry Baldwin.

• The company experienced rapid growth going public in 1992, and growing tenfold by 1997, with locations around the United States, Japan and Singapore.

3. Compare the original Value Chain with the new value chain (why did it change?)

Because now the relation of the clients exists more with the technology and they needed to be introduced in this sense, it in order that more known also it was the market of USA.

4. Analyse and interpet the Boston Matrix for Starbucks products?

5. Explain Starbucks strategy according to Porters model:

Shown is Starbucks as a whole in the differentiation strategy as they provide a high quality coffee and unique experience in the convenience of a large volume of locations, which separates them from their competition. VIA, the new instant coffee line is straddling differentiation and low cost- leadership. While it will be a low cost and convenient alternative to Starbucks regular coffee, it is still unique from other products in the market. The in-store gifts and brewing utensils are in the focused differentiation category as they cater to the coffee lover, and are unique items found only in the Starbucks stores.

6. According to the SWOT analysis what are Starbuck's strenghts, weaknesses, opportunities and threats? (mention at least 3):

Strengths: Weaknesses:

 Brand Identity.-

The company consistently maintains its brand, even without heavy marketing.

 Quality.-

They search for quality beans worldwide.

 Variety.-

They offer drink variety and customization.  Overexposure.-

Starbucks goal to have 30,000 locations stalled in the recent recessions. By becoming overexposed they risk losing the unique quality they were founded on.

 Too many products.-

By constantly adding products, some products have lost value, Seattle’s Best for example, and they are risky endeavors.

 Risky investment in more locations.-

Expanding locations in the US, is a high risk and costly investment in comparison to international expansion.

Opportunities: Threats:

 Customization.-

Starbucks introduced a completely custom frappacino in Canada.

 International Markets.-

Increasing efforts internationally, to increase stability.

 On-the-Go Lifestyle.-

VIA instant coffee and other products to be in groceries and convenience stores.  Direct Competition.-

Direct competition from Peets and Coffee Bean increasing. Lack of marketing.

 Cheaper Alternatives.-

Cheaper alternatives

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