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Starbucks The Famous Coffee Bar example essay topic

429 words

Starbucks is a corporation that offers specialty coffees, coffee beans, cold blended beverages, pastries, coffee related products and machines, and tea. Starbucks opened its first location in 1971 in Seattle. By the year 2000, Starbucks had over 3300 locations, and it is still growing. SWOT STRENGTHS: . 2000 marked 5th consecutive year of sales increase... Low long-term debt to equity ratio of 0.01, company has good financial standing...

1993, Opens second roasting plant in Kent, Washington in order to maintain on-time production and delivery, then in 1995 opened state of the art roasting facility in York, Pennsylvania... Howard Schultz joins corporation in 1982, is a visionary leader who made Starbucks the famous coffee bar that it is today. In 2000, Schultz assumed role of chairman and chief global strategist. WEAKNESSES: . Low presence in third largest coffee market, Japan and Asia... Limited (currently increasing) channels of distribution.

OPPORTUNITIES: . Schultz sees opportunity to make coffee / espresso bar available to everyone: (i.e. : new channels of distribution) o 1990 - Horizon Air Accounto 1991 - First licensed airport location 1992 - Nordstrom Accounto 1993 - Barnes & Noble relationship 1994 - Starwood Hotel Accounto 1995 - United Airlines Accounto 1997 - Canadian Airlines Accounto 1998 - Grocery store coffee bars due to agreement with Kraft Foods. o 2000 - Host Marriott International Agreement. Global Opportunities: o Opens locations in several countries... Other types of drinks, including cold coffee beverages, blended drinks, fruit drink, and tea.

THREATS. Small coffee shops in New York are trying to compete with Starbucks on the basis of customer loyalty... Protesting against Starbucks for using milk with artificial bovine growth hormone. GOST GOALS.

Open 1,200 new locations in 2001,900 in the United States... Open new store in Vienna by end of 2001... Open 10-15 new stores in Zurich within the next 12-18 months... Distribution of new Bottled Frappuccino Coffee Drinks, from affiliation with Pepsi Co, to entire USA by September 2001.

OBJECTIVES. Offer Starbucks coffee products around the world... Open stores in Austria... Offer Starbuck's great quality and service with products other than just coffee. STRATEGIES.

Form alliances with companies to aid in the distribution of Starbucks products... Create own catalogue and website. TACTICS. Form alliances with T AZO, HEAR music, New York Times, Kraft Foods, Pepsi Co, and several other accounts... Offer catalogue ordering to entire USA... Startup of web.

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