Starbucks - Case analysis and problem solving
CASE ANALYSIS AND PROBLEM SOLVING:
STARBUCKS
Course: Business Policy Ethics and Strategy (F-410)
Case Summary
Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. In October 2006, Starbucks was the largest global roaster and retailer of coffee with more than 12,000 retail stores in 60 countries, some 3,000 of which are to be found in forty countries outside the United States. Looking forward, the company expects 50% of all new store opening to be outside the United States. In 2006, Starbucks closed a decade of astounding financial performance with increasing sales from $697 million to 7.8 billion, net profit from $36 million to 40 million and ROIC was 25.5%. These superior financial performances resulted from the excellent coffeehouse format with designing stores to create a relaxed, informal, and comfortable atmosphere and selling premium roasted coffee, freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products in a coffeehouse setting. This also resulted from superior customer services through highly trained and progressively compensated employees; the strategy of owning stores rather than making franchising arrangement for the basic formula. Sophisticated location strategy, and successful exploration of foreign opportunities also contributed to the Starbucks financial performance.
Case Discussion Question 1: Identify the resources, capabilities, and distinctive competencies of Starbucks ?
Answer:-
I) Resources: Resources of Starbucks include-
Tangible Resources: Starbucks Corporation’s tangible resources include-
1. Design of stores: Design of Starbucks coffeehouse store was very much comfortable, relaxed, and an informal third place between Home and Workplace.
2. Premium location: They located their stores in premium location as possible before its competitors could.
STARBUCKS
Course: Business Policy Ethics and Strategy (F-410)
Case Summary
Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. In October 2006, Starbucks was the largest global roaster and retailer of coffee with more than 12,000 retail stores in 60 countries, some 3,000 of which are to be found in forty countries outside the United States. Looking forward, the company expects 50% of all new store opening to be outside the United States. In 2006, Starbucks closed a decade of astounding financial performance with increasing sales from $697 million to 7.8 billion, net profit from $36 million to 40 million and ROIC was 25.5%. These superior financial performances resulted from the excellent coffeehouse format with designing stores to create a relaxed, informal, and comfortable atmosphere and selling premium roasted coffee, freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products in a coffeehouse setting. This also resulted from superior customer services through highly trained and progressively compensated employees; the strategy of owning stores rather than making franchising arrangement for the basic formula. Sophisticated location strategy, and successful exploration of foreign opportunities also contributed to the Starbucks financial performance.
Case Discussion Question 1: Identify the resources, capabilities, and distinctive competencies of Starbucks ?
Answer:-
I) Resources: Resources of Starbucks include-
Tangible Resources: Starbucks Corporation’s tangible resources include-
1. Design of stores: Design of Starbucks coffeehouse store was very much comfortable, relaxed, and an informal third place between Home and Workplace.
2. Premium location: They located their stores in premium location as possible before its competitors could.