Professional Documents
Culture Documents
Vision Statement
Mission Statement
YES/NO
COMPONENT
NO
Yes
Customers
.1
Yes
Products or services
.2
Yes
Markets
.3
No
Technology
.4
Yes
.5
Yes
Philosophy
.6
Yes
Self-Concept
.7
Yes
.8
No
.9
2.2.1
Establish Starbucks as the premier purveyor1 of the finest coffee in the world and also to be
established as the most employee valued company while maintaining our uncompromising
.principles as we grow together with technological advances
:The six principles are
1. Provide a great work environment and treat each other with respect and dignity.
2. Embrace diversity as an essential component in the way we do business.
3. Apply the highest standards of excellence to the purchasing, roasting and fresh
delivery of our coffee.
4. Develop enthusiastically satisfied customers all of the time
5. Contribute positively to our communities and our environment
6. Recognize that profitability is essential to our future success.
:Porters five Forces
Details
Industry
five
profitability
Forces
Rivalry Among Competing Firm
LOW
Potential
development
of
substitute products
There
is
more
bargaining
power
for
LOW
Caribou coffee
Starbucks
WT
SCORE
RATING
WT
SCORE
RATING
WT
SCORE
RATING
WEIGHT
(WT)
0.30
0.40
0.40
0.10
0.40
0.15
0.24
0.10
0.20
0.30
0.20
0.34
2.23
2
3
3
2
2
2
2
2
0.60
0.15
0.16
0.15
0.20
0.30
0.20
0.34
2.50
3
3
2
3
2
2
2
2
0.80
0.10
0.24
0.15
0.30
0.60
0.40
0.51
3.50
2
3
3
3
4
4
0.20
0.05
0.08
0.05
0.10
0.15
0.10
0.17
1.00
CRITICAL
SUCCESS
FACTOR
Advertising
Product Quality
Price
Competitiveness
Management
Financial position
Customer loyalty
Global expansion
Employee benefits
Customer Service
TOTAL
Starbucks shown highest score and the second highest were Caribou Coffee and Gloria
Jeans coffee shows the lowest Score. The competitive profile matrix (CPM) weighs product
quality. The product quality (0.20) and is the most important item on the list of critical
success factors. Starbucks score on this factor as the highest in comparison to their two
chief competitors, Caribou and Gloria and reflecting a distinctive competitive advantage in
the market. Customer service 0.17, Employee benefits 0.10 and global expansion 0.15
replicates a high level of importance on the CPM. The advertising weight, 0.10, on CPM
does not reflect a high level in ranking the critical success factors, but does release valuable
information in comparison to their competitors on the CPM. Starbucks rates and scores the
.lowest on the price competitiveness factor
3.1.4
Ratin
Weigh
Score
0.60
0.15
Opportunities
0.30
0.10
0.20
0.10
0.30
0.10
Threats
0.45
0.15
0.60
0.20
0.20
0.10
2.55
1.00
Weighted Score
Rating
Weight
0.84
0.21
0.40
0.10
0.30
0.10
0.30
0.10
4. Starbucks
has
monopolistic
0.48
0.12
0.24
0.08
Weaknesses
0.20
0.10
0.14
0.07
2.
0.24
0.12
3. Starbucks
products
are
not
available at supermarket
3.14
1.00
TOTAL
SWOT ANALYSIS:
WEAKNESSES
STRENGTHS
Purchased Ethos healthy water for 8 million and also does not use chemical flavor
WO Strategies
SO Strategies
W1,W2,O1,O3
S1,S3,O1,O2,O3
.O1
OPPORTUNITIES
international market
.O2
W1,W3,O3
S5,O4
Do R&D to sell products at
supermarkets without reducing the
.O3
Express foods are getting famous to
reduce time to be spent
.O4
Demand for non-chemical and
healthy products
THREATS
.T1
Increase in the inflation rates
creates a demand in lower
ST Strategies
S2,S3,S4,T1,T2
Starbucks needs to change its market strategy by reducing the
.price to compete with the competitors
WT Strategies
W1,W2,T1,T2
.priced products
.T2
Many companies are pricing
their products cheaper to
.impress customers
.T3
Increase in hypermarkets and
economical supermarkets
W3,T3
Starbucks needs to analyze the way to reduce the risks of selling its coffee products at supermarkets
.as customers are demanding for it
3.2.4
Space Matrix
FINANCIAL STRENGTHS
RATING
start to demand repayment of debt. Long term debt-to-equity ratio is only 0.0017.
efficiency of using assets to generate earning has increased from 12% to 14%.
13
INDUSTRY STRENGTHS
RATING
Starbucks Coffee Liqueur was the top selling new spirit product,
grossed sales over $8million annually.
Starbucks agreed to serve Starbucks Coffee in all United flights.
Starbucks Everywhere approach has increased foot traffic for all the
stores in area. This makes customers easy to fine Starbucks all the places in
town.
12
worst =1+
best = 6+
ENVIRONMENTAL STABILITY
RATING
4-
2-
3-
increase. But, doing that will put Starbucks business in risk as customers dont know
the way to brew the coffee.
Increase in world coffee bean price in 2001, forced Starbucks to
increase its beverages and coffee sold at retail.
9-
COMPETITIVE ADVANTAGES
RATING
11-
2-
2-
6-