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Business Starbucks Corporation SBUX Case Study

 

I am working on a case study on Starbucks. Please use the information provided below and also use other sources in order to do the situation analysis.

Starbucks Corporation (SBUX)

Headquartered in Seattle, Washington and the world’s largest coffee company, being a premier roaster, marketer and retailer of specialty coffee in the world. Starbucks has over 24,000 stores in 76 countries. The company provides customers with the “Starbucks Experience” – comprised of excellent customer service, clean stores, appropriate music, and a comfortable setting. Currently, Starbucks’ Americas segment generates about 69 percent of total revenues. Millions of people every day meet at Starbucks to talk, do business, complete work, and chat with friends. The music selected to play in the stores enhances the relaxed look and feel of the coffeehouse. Starbucks offers a full coffeehouse experience, complete with premium teas, fine pastries, and other sweets. The company also sells a variety of coffee and tea products through licensed stores, grocery stores, and foodservice accounts. Several brands associated with Starbucks are Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange, and Ethos.
In February 2018, Starbucks and JP Morgan Chase began offering the Starbucks Rewards Visa Card, a co-brand credit card integrated directly into the Starbucks Reward loyalty program. Customers using this Visa card earn Stars with every purchase both in and out of Starbucks stores, and can redeem their Stars for food and beverage items at more than 8,000 participating Starbucks locations. Cardholders also become members of the Starbucks Rewards loyalty program comprised of more than 14 million members. Later in 2018, Starbucks and Chase plan to offer a second co-branded product, the Starbucks Rewards Visa Prepaid Card.
Starbucks’ fiscal year ends on September 30. For the company’s fiscal Q1 2018 that ended 12-31-17, revenues increased six percent to a record $6 billion, with comparable store sales up 2 percent. For that Q1, company’s revenues from stores in China increased 30 percent, with comparable store sales up six percent. Starbucks as a whole is performing really well.

Situation Analysis 

  • The Environment – PESTLE Analysis
    1. Political environment
    2. Economic environment
    3. Social environment
    4. Technological environment
    5. Legal/Regulatory environment
    6. Environmental environment
  • The Industry – Porter’s Five Forces Analysis
    1. Bargaining power of suppliers
    2. Threat of new entrant
    3. Rivalry among existing competitors
    4. Bargaining power of competitors
    5. Threat of substitutes
  • The Firm 
    1. What is the mission and vision of the firm?
    2. What are the strengths of the firm?
    3. What is the firm’s financial condition?
    4. What are       the constraints and weaknesses of the firm (i.e. financial condition,       organizational conflict)?
    5. What is the       management philosophy? 
    6. What does       the organizational structure tell you about how decisions are made?
  • The Product
    1. What good       and/or service does the organization offer?
    2. What       consumer need does the product solve?
    3. What       promotional mix, channels of distribution, and pricing strategies are being       used by the organization?
    4. What competitive advantage does the       marketing strategy offer?