STARBUCKS COMPANY CASE AYDIN SANCAK - MEHMET METİN - OSMAN KAYTAN MANAGEMENT & ORGANIZATION DECEMBER 2015
• Starbucks opens first store in Seattle’s Pike Place Market. (Three partners; English Teacher Jerry Baldwin, History Teacher Zel Siegel and Writer Gordon Bowker) INTRODUCTION TO STARBUCKS 1971 1982 • Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars. 1983 • Howard travels to Italy, where he’s impressed with the popularity of espresso bars in Milan. He sees the potential to develop a similar coffeehouse culture in Seattle. Stores: 1 Stores: 4
• Howard founds Il Giornale, offering brewed coffee and espresso beverages made from Starbucks® coffee beans. INTRODUCTION TO STARBUCKS 1985 1987 • Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks Corporation. Opens in Chicago and Vancouver, Canada. 1988 • Offers full health benefits to eligible full and part‐time employees. 1992 • Completes initial public offering (IPO), with common stock being traded on the NASDAQ National Market under the trading symbol SBUX. 1997 • Establishes the Starbucks Foundation. Stores: 17 Stores: 33 Stores: 165 Stores: 1.412
• Howard Schultz transitions to chairman and chief global strategist, Orin Smith promoted to president and chief executive officer. INTRODUCTION TO STARBUCKS 2000 • Introduces ethical coffee‐sourcing guidelines developed in partnership with Conservation International. 2001 • Opens stores in Turkey by Shaya Group. (First in İstanbul) 2003 • Chairman Howard Schultz returns as chief executive officer.2008 • Expands digital offerings for customers with free unlimited Wi‐Fi, Starbucks Digital Network. 2010 • Celebrates 40th anniversary2011 Stores: 3.501 Stores: 4.709 Stores: 7.225 Stores: 16.680 Stores: 16.858 Stores: 17.003
191,000 worldwide employees $1,714B investment in two years #1 Fortune’s global Most Admired Food Service Company On 6 continents, 66 countries $16,448B revenue , #187 Fortune 500 5 44 years serving customers STARBUCKS TODAY #5 Fortune’s global Most Admired Company
8 29 Rank of Starbucks brand value in the world 2 Rank of Starbucks brand value in the world for fast food company Category Brand Brand Value 2015 M$ 1 Technology Apple 246,992 2 Technology Google 173,652 3 Technology Microsoft 115,500 4 Technology IBM 93,987 5 Payments VISA 91,962 6 Telecom Providers AT&T 89,492 7 Telecom Providers Verizon 86,009 29 Fast Food Starbucks 29,313 Sourc: http://www.millwardbrown.com/BrandZ/2015/Global/2015_BrandZ_Top100_Chart.pdf STARBUCKS TODAY
WORLD COFFEE CONSUMPTION (IN THOUSAND 60KG BAGS)
MISSION To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
VISION Together we will elevate our partners, customers, suppliers and neighbors to create positive change. To be innovators, leaders and contributors to an inclusive society and a healthy environment so that Starbucks and everyone we touch can endure and thrive.
CORPORATE STRATEGY • Maximize market penetration • Provide a relaxing, attractive social atmosphere • Offer high-quality products • Create a great working environment • Achieve profitability
STORY TO THE START
BREAKDOWN OF PRODUCT SALES Beverages 75% Food 19% Packaged and Single Serve Coffee 4% Coffee-making equipment and other merchandise 2%
STARBUCKS ENTRY MODE TYPE
PORTER’S FIVE FORCES
THE STARBUCKS EXPERIENCE The STARBUCKS EXPERIENCE can be found on two very distinct levels of the company: • In its unique corporate culture • In its passing down of these values to its partners
TRAINING, TRAINING, TRAINING
SEVEN BIG MOVES 1. Be the undisputed coffee authority 2. Engage and inspire our partners 3. Ignite the emotional attachment with our customers 4. Expand our global presence — while making each store the heart of the local neighborhood 5. Be a leader in ethical sourcing and environmental impact 6. Create innovative growth platforms worthy of our coffee 7. Deliver a sustainable economic model
STARBUCKS TASTING ROOM
THIRD PLACE Starbucks is known for more than just great coffee, we’re also known for creating an idyllic “third place” (first place – home, second place - work, third place – Starbucks) where customers feel welcome and at home.
SOME TIPS FOR «THIRD PLACE»
MY STARBUCKS IDEA
MY STARBUCKS IDEA
STARBUCKS MOBILE ORDER & PAY
SOCIAL RESPONSIBILITY 1- College Achievement Plan 2- Starbucks Ethical Sourcing of Sustainable Products 3- Starbucks will donate $0.70 [the average price of a tree] to Conservation International for every bag of coffee sold from participating Starbucks® stores in the US to foster thriving coffee communities. 4- Veterans and Military Support